Mortgage Insights & Guides

Updated July 28, 2026. You do not always need a 20% down payment to buy a home in Canada. The minimum depends on the purchase price, while a lender may require more based on the property, credit, income, and mortgage program. What is a down payment? A down payment is the money you contribute toward the purchase price of a home. Your mortgage covers the remaining eligible amount. The size of the down payment affects how much you borrow, whether mortgage default insurance is generally required, and the size of the monthly payment. Minimum down payment in Canada Home purchase price Minimum down payment $500,000 or less 5% of the purchase price More than $500,000 but less than $1.5 million 5% of the first $500,000, plus 10% of the amount above $500,000 $1.5 million or more 20% of the purchase price For example, the minimum down payment on a $600,000 home is: These are minimums. A lender may require a larger down payment depending on the application. See the Financial Consumer Agency of Canada down-payment guidance. What happens if you put down less than 20%? If the down payment is below 20%, mortgage default insurance is typically required. The lender arranges this insurance, and the premium may be added to the mortgage. The insurance protects the lender, not the borrower. The purchase price, property type, occupancy, credit profile, and lender guidelines can affect eligibility. Reviewing the complete application before making an offer can prevent surprises. Can you use the Home Buyers’ Plan? Eligible buyers can currently withdraw up to $60,000 from an RRSP through the Home Buyers’ Plan. A couple buying together may each be able to use the program if both meet the conditions. Participants must meet the program rules and generally repay the amount to their RRSP over time. The Home Buyers’ Plan may also be used with an eligible First Home Savings Account withdrawal for the same qualifying home. Review the Canada Revenue Agency Home Buyers’ Plan rules. Is the First-Time Home Buyer Incentive still available? No. The federal First-Time Home Buyer Incentive was discontinued in 2024 and is no longer accepting applications. Should you make a larger down payment? A larger down payment can reduce the mortgage amount and monthly payment, but using all available savings may leave too little for closing costs, repairs, moving expenses, and emergencies. The right target should support both the purchase and life after closing. Get a mortgage readiness check in Brampton Not sure what down payment makes sense for your situation? Request a free 10-minute mortgage readiness check with Jatin Sood. Jatin SoodMortgage Agent Level 2, Lic. #M24002757The Mortgage Centre – Hard Money Approvals, Brokerage #12880Independently Owned & Operated+1 647-569-8109 This article provides general information and is not financial, legal, or tax advice. Mortgage qualification and program eligibility depend on individual circumstances and lender requirements.

Quick answer: A fixed-rate mortgage keeps your interest rate the same for the term, so payments are predictable. A variable-rate mortgage moves with the lender’s prime rate, so your interest cost can rise or fall. Fixed usually suits borrowers who value certainty; variable may suit borrowers who can absorb changes. Choosing between a fixed and variable mortgage is an important decision. The better fit depends on your plans, budget, risk tolerance and the full mortgage terms—not only the starting rate. What is a Fixed-Rate Mortgage? A fixed-rate mortgage keeps the interest rate the same for the mortgage term. Payments are generally predictable, which can make budgeting easier. Potential advantages:• Predictable payments during the term• Protection from rate increases during the term• Easier long-term budgeting Points to check:• Fixed rates may start higher than some variable options• The penalty for breaking the mortgage early can be significant What is a Variable-Rate Mortgage? A variable-rate mortgage changes with the lender’s prime rate. If prime goes down, your interest cost goes down; if it goes up, you pay more interest, either through a higher payment or a larger share of each payment going to interest, depending on the mortgage. Potential advantages:• The starting rate may be lower than a comparable fixed option• Interest cost may decline if prime falls• Some lenders use a three-month-interest penalty when the mortgage is broken Points to check:• Interest cost can rise if prime increases• Payments or amortization can change depending on the product Payment Types and Penalties to Check Two details are often missed. First, with some variable mortgages the payment stays the same and the share going to interest changes when prime moves; with others (often called adjustable-rate mortgages) the payment itself changes. Second, breaking a fixed-rate mortgage early can cost much more than breaking a variable one, because fixed-rate penalties are often based on an interest rate differential. Ask the lender how both work before you sign. Which One Should You Choose? Consider how much payment change your budget can absorb, how long you expect to keep the mortgage, whether you may sell or refinance early, and how each lender calculates its penalty. Compare the complete contract before deciding. Final Thoughts Both mortgage types can be useful. The right choice depends on your situation and risk tolerance. Let’s discuss your goals and compare options that fit your plans.

Quick answer: The fastest mortgage approvals usually come from complete, consistent files. Check your credit report, get pre-approved, gather your income, down payment and ID documents before you shop, keep your debts steady, and avoid job changes, new credit or unexplained deposits until closing. Timing still depends on the lender and the property. Buying a home is exciting, but mortgage approval can feel overwhelming. A complete, well-organized file may reduce avoidable questions and delays, although every lender, borrower, and property is reviewed differently. These five steps can help you prepare for the process. Review Your Credit Report Lenders use credit history as one part of their assessment. Review your credit report for errors, make payments on time, and avoid using more credit than you can comfortably manage. A credit score is important, but it is not the only factor in a mortgage decision. Get Pre-Approved Before House Hunting A mortgage pre-approval can provide an estimated borrowing range after a preliminary financial review. It can help you set a budget, but it is not a guarantee of final approval. The property, updated documents, lender conditions, and any material financial changes still matter. Gather Documents in Advance Missing or inconsistent paperwork can create follow-up questions. Commonly requested items include:• Proof of income and employment• Bank and investment statements• Identification• Down payment and closing-cost evidence• Details of debts and other financial obligations Additional documents may be required for self-employed income, gifted funds, rental properties, or unusual deposits. If you run a business, see the self-employed mortgage guide and document checklist. Understand Your Debt-Service Ratios Lenders compare housing costs and other debts with qualifying income. Avoid taking on unnecessary new debt while preparing an application, and discuss any planned credit changes with your mortgage professional before acting. Avoid Major Financial Changes A job change, large purchase, new credit account, or unexplained transfer can affect a lender’s review. Keep records for large deposits and notify your mortgage professional when something material changes before closing. How Long Does Mortgage Approval Take? There is no fixed timeline. A pre-approval, a purchase approval and a refinance are reviewed differently, and each lender sets its own conditions. What you control is how complete and consistent your documents are when the file is submitted. That is often the difference between a quick decision and several rounds of follow-up questions. What if a bank cannot approve the application? A bank decline does not automatically mean every mortgage path is closed. Depending on the borrower, property, equity, costs, and exit plan, private or alternative financing may be considered. Review Jatin’s guide to private mortgage options in Brampton before deciding whether that route fits your situation. Frequently Asked Questions Does a pre-approval mean my mortgage is approved? No. A pre-approval estimates what you may qualify for after a preliminary review. Final approval still depends on the property, updated documents, lender conditions and any changes to your finances. What documents help speed up a mortgage approval? Lenders commonly ask for proof of income and employment, recent bank and investment statements, government ID, proof of down payment and closing funds, and details of your debts. Self-employed income, gifted funds and rental income usually need extra documents. Can a mortgage agent make approval faster? A mortgage agent can help you prepare a complete file and compare lenders whose requirements fit your situation. That can reduce back-and-forth, but no agent can guarantee approval or a specific timeline. Want a second look at your file before you apply? Talk to Jatin This article provides general information, not a promise of approval or financial, legal, or tax advice. Mortgage qualification depends on the complete borrower and property review.