How much down payment do I need in Canada?

You need 5% for homes under $500,000, 5% plus 10% on the portion up to $1.5 million, and 20% for homes above $1.5 million.

Can I buy a home with bad credit in Canada?

Yes. Many lenders offer alternative or private mortgage options for borrowers with lower credit scores, though interest rates may be higher.

Most lenders prefer a credit score of 680 or higher for the best rates, but approvals are still possible with lower scores.

It depends on your income, debts, and interest rates. Most lenders allow up to 39% of income for housing costs and 44% for total debt.

You must qualify at the higher of 5.25% or your mortgage rate plus 2%, even if your actual rate is lower.

Fixed mortgages offer stable payments, while variable rates can change with the market and may start lower.

A pre-approval confirms your budget, locks in a rate for up to 120 days, and strengthens your offer when buying a home.

Pre-approvals can take 24–72 hours, while full approvals typically take 1 to 2 weeks depending on your documents.

Yes. You may need two years of income history or use alternative lenders that accept bank statements or stated income.

Mortgage insurance is required when your down payment is under 20% and is added to your mortgage cost.

Yes, in many cases, especially with insured mortgages, you can switch lenders at renewal to get a better rate.

At renewal, you can accept your lender’s offer, negotiate better terms, or switch lenders.

Closing costs typically range from 1.5% to 4% of the purchase price and include legal fees, taxes, and inspections.

Programs include the FHSA, RRSP Home Buyers’ Plan, and various government incentives and rebates.

Yes. Most lenders allow refinancing up to 80% of your home’s value to access equity or consolidate debt.

Rates are influenced by the Bank of Canada, inflation, market conditions, and your credit and financial profile.

You typically need ID, proof of income, employment details, down payment proof, and credit history.

Yes. You may need re-established credit, a larger down payment, and may need to use alternative lenders.

No. You only need 20% down for homes over $1.5 million or to avoid mortgage insurance.

Yes. Many lenders offer 30-year amortizations, especially for first-time buyers, to lower monthly payments.

Jan 31, 2020

4 min read