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Buying a home is one of the biggest financial decisions you’ll make. Whether you’re a first-time buyer, self-employed, or looking to refinance, understanding the mortgage process can save you time, stress, and money.

Here are the top 5 things to know before applying for a mortgage in Canada:

1. ✅ Your Credit Score Matters — A Lot

Your credit score is one of the first things lenders look at. A higher score (typically 680+) gives you access to better rates and more options.

Tip: Check your credit report before applying. Look for errors and try to reduce any outstanding balances.

2. 💼 Stable Income Is Key — Even If You’re Self-Employed

Lenders want to see consistent, verifiable income. If you’re employed, recent pay stubs and a letter from your employer usually suffice. If you’re self-employed, you’ll need 2 years of T1 Generals, NOAs, and possibly business financials.

Self-employed? Mortgages by Gill specializes in finding tailored mortgage solutions for business owners and freelancers.

3. 💰 Know Your Down Payment and Closing Costs

In Canada, the minimum down payment is:

  • 5% for homes under $500,000
  • 10% on the portion between $500,000–$999,999
  • 20% for homes over $1 million

Don’t forget closing costs, which can range from 1.5% to 4% of the purchase price — including legal fees, appraisal, and land transfer tax.

4. 📈 Get Pre-Approved Before You Shop

A mortgage pre-approval helps you:

  • Know your budget
  • Lock in an interest rate (typically for 90–120 days)
  • Strengthen your offer when negotiating with sellers

Bonus: It also lets you fix any issues before they impact your mortgage application.

5. 🤝 Choose the Right Mortgage Broker

Every borrower is different — and so is every mortgage. A good mortgage broker will:

  • Compare multiple lenders on your behalf
  • Explain all your options (fixed vs variable, open vs closed)
  • Help with paperwork and approvals

📝 Final Thoughts

A mortgage is more than just a rate — it’s a financial strategy. Whether you’re buying your first home, upgrading, or refinancing to access equity, being informed puts you in control.

📞 Need guidance?
At Mortgages by Gill, we simplify the process and find the best mortgage that fits your life. Contact us today for expert, personalized advice.

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