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.