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What you can afford depends on your income, debts, down payment, interest rates, and Canada’s current mortgage rules. Lenders focus on monthly affordability, not just purchase price. Most buyers must keep housing costs within: ≤ 39% of gross income (housing only), and ≤ 44% of gross income (housing + all other debts) Updated down payment rules (homes up to $1.5 million) Mortgage insurance is now available for purchases up to $1.5 million, with minimum down payments of: 5% on the first $500,000 10% on the portion from $500,000 to $1,000,000 20% on the portion from $1,000,000 to $1,500,000 Homes over $1.5 million require 20% down on the full price. Stress test reminder You must qualify at the higher of: The Bank of Canada qualifying rate, or Your contract rate + 2% This typically reduces buying power by 10–20% compared to online calculators. What this means in practice Two buyers with the same income can qualify for very different amounts depending on debts, down payment structure, property taxes, and lender type. A personalized review gives a far clearer number than generic calculators. Optional free resource If you’d like help organizing your numbers, I offer a free Mortgage Planning Toolkit with affordability worksheets and down-payment planning tools for Canadian buyers. General information only. Mortgage approvals are subject to lender underwriting and current Canadian regulations (OSFI / FSRA).

A home inspection is a professional, visual assessment of a property’s condition. In most cases, yes—you should strongly consider having one done, especially if you want to avoid costly surprises after you take possession. What is a home inspection? A home inspection is completed by a certified home inspector and typically reviews the home’s major systems, including: Roof, foundation, and structure Plumbing, electrical, and HVAC systems Windows, doors, insulation, and ventilation Signs of moisture, leaks, or visible damage The inspector provides a written report outlining findings, safety concerns, and recommended follow-ups. A home inspection does not guarantee the condition of a home, nor does it involve opening walls or testing hidden systems. Should you have one done? In most situations, yes. A home inspection helps you: Identify potential repair costs before you buy Renegotiate price or conditions if issues are found Decide whether to move forward with confidence Avoid unexpected expenses shortly after closing Even in competitive markets where inspections are sometimes waived, buyers should understand the risk they are taking on by doing so. When inspections are especially important Older homes Homes with basements or visible moisture Rural or well/septic properties Private sales or estate properties First-time homebuyers How this affects your mortgage While lenders don’t usually require a home inspection, major issues discovered later can affect your finances, especially if repairs impact cash flow after closing. Factoring inspection results into your planning helps keep your mortgage comfortable long-term. Bottom line A home inspection is a relatively small upfront cost that can prevent major financial stress later. It’s one of the simplest ways to protect yourself when buying a home. General information only. Always consult qualified professionals. Mortgage approvals and lending decisions are subject to lender guidelines and Canadian regulations (FSRA / OSFI).

The minimum down payment depends on the purchase price of the home and whether the mortgage is insured or uninsured. In Canada, buyers can purchase a home with as little as 5% down, provided they meet mortgage insurance and lender requirements. Minimum down payment rules (Canada) For homes up to $1.5 million, the minimum down payment is tiered: 5% on the first $500,000 10% on the portion from $500,000 to $1,000,000 20% on the portion from $1,000,000 to $1.5 million Homes over $1.5 million require 20% down on the full purchase price and are not eligible for mortgage default insurance. High-ratio vs. conventional mortgages Less than 20% down Mortgage insurance is required (CMHC, Sagen, or Canada Guaranty) Insurance premiums are added to the mortgage 20% or more down Mortgage insurance is not required Often provides more lender flexibility Additional costs to plan for Your down payment is separate from closing costs. Buyers should also budget 1.5%–4% of the purchase price for: Land transfer taxes Legal fees and disbursements Adjustments and insurance Why the minimum isn’t always the best option While minimum down payments make homeownership accessible, a higher down payment can: Reduce monthly payments Lower total interest costs Improve long-term flexibility at renewal The right choice depends on cash flow, future plans, and risk comfort. Bottom line The minimum down payment is a starting point—not a strategy. Reviewing options before making an offer helps ensure your purchase remains comfortable long after closing. General information only. Mortgage approvals are subject to lender underwriting and current Canadian regulations (OSFI / FSRA).

Mortgage loan insurance—often called mortgage default insurance—protects the lender, not the buyer, if the borrower is unable to make their mortgage payments. In Canada, it is required when the down payment is less than 20% of the purchase price. How mortgage loan insurance works If you buy a home with less than 20% down, the lender must insure the mortgage through one of Canada’s approved insurers: CMHC (Canada Mortgage and Housing Corporation) Sagen Canada Guaranty The insurance allows buyers to purchase with a smaller down payment while reducing the lender’s risk. How much does mortgage insurance cost? The insurance premium is based on the loan-to-value (LTV) of the mortgage: The smaller the down payment, the higher the premium Premiums typically range from 2.8% to 4.0% of the mortgage amount Most buyers add the premium to the mortgage and pay it over time, rather than upfront. When mortgage loan insurance is required Mortgage insurance is required when: The down payment is less than 20% The purchase price is up to $1.5 million The property is owner-occupied and meets insurer guidelines Homes over $1.5 million are not eligible for mortgage default insurance and require at least 20% down. What mortgage loan insurance does not cover Mortgage loan insurance does not: Protect the homeowner Cover missed payments or job loss Replace home or mortgage protection insurance Separate insurance products are available to protect homeowners if needed. Why insured mortgages can still benefit buyers Although insurance adds a cost, insured mortgages often offer: Access to lower interest rates Higher approval certainty Earlier entry into homeownership with less cash upfront Bottom line Mortgage loan insurance helps make homeownership more accessible, but it’s important to understand the cost and long-term impact. Choosing the right structure can save thousands over the life of a mortgage. General information only. Mortgage approvals are subject to lender underwriting and current Canadian regulations (OSFI / FSRA).

A conventional mortgage is a mortgage where the buyer puts at least 20% down, meaning mortgage loan (default) insurance is not required. These mortgages are commonly used by move-up buyers, investors, and homeowners refinancing or renewing. How a conventional mortgage works With a conventional mortgage: The down payment is 20% or more of the purchase price The loan is not insured by CMHC, Sagen, or Canada Guaranty The lender assumes more risk, which can affect rates and guidelines Conventional mortgages are available for all price ranges, including homes over $1.5 million. Key features of a conventional mortgage No mortgage insurance premiums added to the loan Greater flexibility in property type and usage Often fewer restrictions on amortization, refinancing, or rental properties Required for purchases over $1.5 million Conventional vs. insured mortgages (at a glance) Down payment: 20%+ vs. less than 20% Insurance: Not required vs. required Rates: May be slightly higher vs. often lower Flexibility: Higher vs. more restricted The best option depends on cash flow, long-term plans, and risk comfort—not just the rate. When a conventional mortgage makes sense You have sufficient savings for a 20% down payment You’re buying a higher-priced home You want flexibility for future refinancing or investment use You prefer avoiding added insurance costs Bottom line A conventional mortgage trades a higher down payment for flexibility and simplicity. Reviewing both insured and conventional options ensures your mortgage fits your long-term goals. General information only. Mortgage approvals are subject to lender underwriting and current Canadian regulations (OSFI / FSRA).

Bankruptcy does not permanently prevent you from getting a mortgage in Canada, but it does affect when, how, and with whom you can qualify. Your options depend on how long ago the bankruptcy was discharged, how your credit has been rebuilt, and the size of your down payment. During bankruptcy or immediately after discharge Traditional banks will not approve a mortgage Alternative or private lenders may be options in limited cases Larger down payments and higher interest rates are common Lenders focus more on income stability and equity than credit score This stage is usually about short-term solutions, not long-term optimization. 1–2 years after discharge You may qualify with: Alternative (B-lenders) A minimum 20% down payment Re-established credit (often 1–2 active trade lines paid on time) Rates are typically higher than bank rates, but these mortgages are often used as a stepping stone back to prime lending. 2+ years after discharge (with good credit rebuilding) Many borrowers can qualify with: Major banks or credit unions Competitive rates Lower risk premiums Mortgage insurers may also consider applications after this point, provided credit has been properly re-established and income is strong. What lenders look for after bankruptcy Time since discharge Consistent, on-time payments since bankruptcy Stable employment or business income Reasonable debt levels Down payment source and size Each lender and insurer has different guidelines, so structure matters. Common mistakes to avoid Applying too early without a strategy Rebuilding credit incorrectly or too slowly Using short-term lenders without an exit plan Assuming all lenders view bankruptcy the same way A structured plan can significantly shorten the path back to competitive financing. Bottom line Bankruptcy is a reset—not a dead end. With the right guidance and timeline, many Canadians return to homeownership sooner than expected. General information only. Mortgage approvals are subject to lender underwriting and current Canadian regulations (OSFI / FSRA).

Child support can affect mortgage qualification because lenders treat it as part of your monthly cash flow. Support you pay is counted as a debt, while support you receive may be counted as income, provided it is stable and documented. If you pay child support Child support payments are included in your Total Debt Service (TDS) calculation They reduce the mortgage amount you can qualify for Lenders require proof, such as a court order or separation agreement Even if payments are informal, lenders may still require them to be disclosed. If you receive child support Child support may be counted as income if: Payments are court-ordered or formally agreed They have been received consistently, typically for 6–12 months The support is expected to continue for the foreseeable future Lenders may apply limits or discounts depending on the child’s age and remaining term. Why this matters Mortgage lenders assess your ability to handle payments over time. Child support impacts affordability in the same way other fixed obligations or reliable income sources do. Failing to disclose support—paid or received—can cause approval delays or declines later in the process. Planning considerations Timing your application can matter if support terms are changing The structure of the mortgage may need to account for future changes in income or obligations Different lenders treat child support differently, especially in separation or divorce situations Bottom line Child support doesn’t prevent mortgage approval, but it must be factored in correctly. Proper documentation and lender selection can make a meaningful difference. General information only. Mortgage approvals are subject to lender underwriting and current Canadian regulations (OSFI / FSRA).

Most Canadians can qualify for a mortgage if they have verifiable income, an acceptable credit profile, a down payment, and manageable debts. Approval depends on your overall financial picture—not just one factor. What lenders look at when approving a purchase mortgage To qualify, lenders typically assess: Income stability Employment, self-employment, pension, or other reliable income sources Credit history Credit score, repayment patterns, and any past issues such as late payments or collections Down payment Minimums start at 5%, depending on the purchase price and mortgage type Debt levels Car loans, credit cards, lines of credit, and other obligations Property details Purchase price, location, property type, and intended use (owner-occupied vs. rental) Common situations that still allow approval Many buyers assume they won’t qualify, but mortgages are often available for: First-time homebuyers Self-employed borrowers Buyers with past credit challenges Buyers using gifted down payments Buyers purchasing with less than 20% down The key is structuring the application correctly and choosing the right lender. Pre-approval vs. approval A pre-approval estimates what you may qualify for and can lock in a rate Final approval occurs once a specific property is selected and fully reviewed Both steps help avoid surprises during the buying process. Bottom line If you’re considering purchasing a home, a mortgage is often achievable with the right planning—even if your situation isn’t “perfect.” A quick review can clarify your options before you start shopping. General information only. Mortgage approvals are subject to lender underwriting and current Canadian regulations (OSFI / FSRA).

Yes. In Canada, gifted funds can be used for a down payment, as long as they meet lender and mortgage insurer requirements. Key rules lenders follow Most lenders allow gifted down payments if: The funds come from an immediate family member (parent, grandparent, sibling, or spouse) The gift is non-repayable A signed gift letter confirms no expectation of repayment The money is deposited into your account before closing For insured mortgages (less than 20% down), these rules are strictly enforced. What documentation is required Typically, lenders will ask for: A gift letter (lender-provided or standard form) Proof of transfer (bank statements showing the funds deposited) Identification of the gift source Some lenders also require the funds to be in your account for a short period before closing. Can gift funds be used with 20% down? Yes. Gifted funds can be used toward a 20% or higher down payment as well, though lender flexibility may increase with larger equity and stronger credit. Important considerations Gift funds cannot be a loan Undisclosed repayment arrangements can cause approval issues Different lenders treat gifts slightly differently, especially for self-employed buyers Planning the timing and paperwork correctly helps avoid last-minute delays. Bottom line Gifted down payments are common and accepted in Canada—but they must be structured and documented properly. A quick review before you move funds can prevent issues later. General information only. Mortgage approvals are subject to lender underwriting and current Canadian regulations (OSFI / FSRA).

A pre-approved mortgage is a lender’s conditional assessment of how much you may be able to borrow and at what interest rate, based on your financial information—before you choose a home. What a pre-approval does A mortgage pre-approval typically: Estimates your maximum purchase price Confirms the down payment structure May hold an interest rate for a set period (often 90–120 days) Helps you shop with a clearer budget It’s an important planning tool, especially in competitive markets. What a pre-approval does not do A pre-approval is not a guarantee of final approval. Final approval still depends on: The specific property you buy A full lender review of documents Appraisal and insurer approval (if applicable) Changes to income, credit, or debts after pre-approval can affect the outcome. Information usually required To issue a pre-approval, lenders review: Income and employment details Credit history Down payment source Existing debts Some pre-approvals are automated and less detailed than a full application. Why a pre-approval is helpful Reduces uncertainty before making an offer Helps avoid over-stretching financially Strengthens confidence when negotiating Flags potential issues early Bottom line A pre-approved mortgage gives you clarity, not certainty. It’s a smart first step, but the real work happens once a property is selected and reviewed. General information only. Mortgage approvals are subject to lender underwriting and current Canadian regulations (OSFI / FSRA).

Not always. Waiting until maturity is simple, but it isn’t always the best financial decision. In many cases, reviewing your mortgage 6–12 months before maturity gives you more options and can save money. What it means for a mortgage to mature Mortgage maturity is the date your current term ends and the balance must be: Renewed with your current lender, or Replaced with a new mortgage (refinance or switch) If no action is taken, most lenders automatically renew you at posted rates. When waiting can make sense Your rate and terms are still competitive You don’t plan to change lenders or make changes There are no upcoming financial changes In these cases, renewing close to maturity may be reasonable. When waiting may cost you You may benefit from reviewing early if: Rates are trending downward You want to consolidate debt or access equity Your financial profile has improved Your lender’s renewal terms are restrictive Many lenders allow early rate holds or forward approvals well before maturity. Why timing matters Starting early allows time to: Compare lenders and structures Lock in options without pressure Avoid last-minute renewals that favour the lender You maintain control rather than defaulting into a renewal. Bottom line Waiting until maturity is convenient, but planning ahead creates choice. Reviewing your mortgage early ensures your next term aligns with your goals—not just your lender’s offer. General information only. Mortgage approvals are subject to lender underwriting and current Canadian regulations (OSFI / FSRA).

A down payment is the portion of a home’s purchase price you pay upfront, using your own funds, when buying a property. The remainder is financed through a mortgage. How a down payment works When you buy a home: The down payment reduces the amount you need to borrow A larger down payment lowers your mortgage balance and monthly payments Down payment size affects whether mortgage loan insurance is required In Canada, down payments are paid at closing and must come from verified sources. Minimum down payment in Canada The minimum required depends on the purchase price: 5% on the first $500,000 10% on the portion from $500,000 to $1,000,000 20% on the portion from $1,000,000 to $1.5 million Homes over $1.5 million require 20% down on the full price. Acceptable down payment sources Lenders typically accept: Personal savings Gifted funds from immediate family RRSP withdrawals (Home Buyers’ Plan) Sale proceeds from another property All sources must be documented. Why the down payment matters Your down payment affects: Mortgage insurance requirements Interest costs over time Financial flexibility after purchase Choosing the right amount is about balance—not just meeting the minimum. Bottom line A down payment is more than a requirement—it’s a planning tool. Structuring it properly helps ensure your home purchase remains affordable long after closing. General information only. Mortgage approvals are subject to lender underwriting and current Canadian regulations (OSFI / FSRA).

In Canada, you can buy a home with as little as 5% down by using an insured (high-ratio) mortgage, provided the property price, your income, and your credit meet lender and mortgage insurer guidelines. How the 5% down option works When you put less than 20% down, the mortgage must be insured through: CMHC Sagen Canada Guaranty This insurance protects the lender and allows buyers to enter the market with a smaller down payment. Minimum down payment structure For homes up to $1.5 million, the minimum down payment is tiered: 5% on the first $500,000 10% on the portion from $500,000 to $1,000,000 20% on the portion from $1,000,000 to $1.5 million Homes over $1.5 million require 20% down on the full price. Key requirements to qualify To purchase with 5% down, lenders typically require: Stable, verifiable income Good credit history (often 680+ for best options) Passing the federal mortgage stress test Owner-occupied property (not a rental) Other costs to plan for The down payment does not include closing costs. Buyers should budget an additional 1.5%–4% of the purchase price for legal fees, land transfer tax, and adjustments. Why 5% down can make sense For some buyers, especially first-time purchasers, 5% down allows: Earlier entry into homeownership Preservation of emergency savings Access to competitive insured mortgage rates The trade-off is mortgage insurance premiums added to the loan. Bottom line Buying with 5% down is achievable for many Canadians, but it must be structured correctly. Reviewing affordability and insurance rules early helps avoid surprises once you’re ready to make an offer. General information only. Mortgage approvals are subject to lender underwriting and current Canadian regulations (OSFI / FSRA).

You can pay off your mortgage faster by reducing interest over time and increasing how much goes toward principal, using features already built into most Canadian mortgages. Practical ways to accelerate mortgage payoff 1. Increase your payment frequency Switching from monthly to bi-weekly or accelerated bi-weekly payments adds an extra payment each year, reducing interest without feeling like a lump sum. 2. Make lump-sum payments Most mortgages allow 10–20% annual prepayments without penalty. Applying bonuses, tax refunds, or savings directly to principal can shorten your amortization by years. 3. Increase your regular payment Even a small increase (5–10%) can significantly reduce interest costs over the life of the mortgage. 4. Shorten your amortization at renewal At renewal, choosing a shorter amortization accelerates payoff without penalty and often improves long-term savings. 5. Use mortgage features strategically Some mortgages allow: Double-up payments Payment increases at set times Flexible prepayment privileges Using these features intentionally makes a meaningful difference. What to watch out for Prepayment limits vary by lender Fixed-rate mortgages have stricter rules than variable Penalties may apply if limits are exceeded Reviewing your mortgage terms before making changes is essential. Bottom line Paying off your mortgage sooner is less about extreme sacrifices and more about consistent, strategic adjustments. A quick review of your mortgage features can reveal opportunities to save years and thousands in interest. General information only. Mortgage approvals and terms are subject to lender guidelines and current Canadian regulations (OSFI / FSRA).

ou can use your RRSP through the Home Buyers’ Plan (HBP), which allows first-time buyers in Canada to withdraw up to $60,000 per person from their RRSP to help with a down payment—without immediate tax. How the Home Buyers’ Plan works Under the HBP: You can withdraw up to $60,000 from your RRSP Couples may access up to $120,000 combined Withdrawn funds are not taxed if repaid correctly You have up to 15 years to repay the amount to your RRSP Repayments usually start the second year after purchase. Who qualifies as a first-time buyer? You’re considered a first-time buyer if: You did not own a home in the previous four calendar years, or You experienced a relationship breakdown and meet CRA conditions RRSP funds must be on deposit for at least 90 days before withdrawal. What you can use the funds for RRSP withdrawals under the HBP can be used for: Down payment Closing costs related to the purchase They cannot be used for investment properties. Important planning considerations Missed repayments are added to taxable income Using RRSPs may affect long-term retirement savings Timing the withdrawal properly avoids unnecessary tax The HBP works best when coordinated with your overall mortgage and savings strategy. Bottom line Using your RRSP can make buying your first home more accessible—but it should be done thoughtfully. A clear plan ensures you benefit today without compromising tomorrow. General information only. Mortgage approvals are subject to lender underwriting and current Canadian regulations (OSFI / FSRA). CRA rules apply to the Home Buyers’ Plan.

Buying a home involves more than just the purchase price. In addition to your down payment, buyers in Canada should budget for closing costs, ongoing ownership costs, and moving-related expenses. 1. Upfront costs (before and at closing) Down payment Minimums start at 5%, depending on the purchase price Larger down payments reduce borrowing and insurance costs Deposit Paid when your offer is accepted Forms part of your down payment Land transfer tax Provincial, and municipal in some areas (such as Toronto) Often one of the largest closing costs Legal fees and disbursements Lawyer or notary fees Title registration and administrative costs Home inspection Optional but strongly recommended Mortgage loan insurance (if applicable) Required if less than 20% down Usually added to the mortgage balance 2. Closing adjustments and prepaid costs These are often overlooked and can include: Property tax adjustments Utility adjustments Condo fee adjustments Interest adjustments 3. Ongoing ownership costs After you take possession, plan for: Monthly mortgage payments Property taxes Home insurance Utilities and maintenance Condo fees (if applicable) 4. Other common expenses Appraisal fees (if required by the lender) Moving costs Furniture or immediate repairs Bottom line A good rule of thumb is to budget 1.5%–4% of the purchase price for closing costs, in addition to your down payment. Planning ahead helps avoid last-minute stress and protects your cash flow after you move in. General information only. Mortgage approvals are subject to lender underwriting and current Canadian regulations (OSFI / FSRA).

There’s no single “best” mortgage term. The right length depends on your risk tolerance, cash flow, and future plans. In Canada, most borrowers choose terms between 1 and 5 years, with the 5-year term being the most common. Common mortgage term options 1- to 3-year terms Often offer more flexibility Useful if you expect rates to change or plan to sell or refinance soon Payments may be higher or lower depending on market conditions 5-year term Popular for payment stability Easier to budget with predictable payments Less exposure to short-term rate changes Longer terms (7–10 years) Less common Provide extended rate certainty Usually come with higher rates and stricter penalties Key factors to consider When choosing a term, think about: How long you plan to stay in the home Your comfort with payment changes The likelihood of refinancing, selling, or accessing equity Penalties if you break the mortgage early Many borrowers break their mortgage before the term ends, so flexibility matters. Strategy matters more than the term The “best” term aligns with: Your financial goals Your tolerance for interest-rate changes A clear plan for renewal or exit Rate alone shouldn’t drive the decision. Bottom line Mortgage term length is a strategic choice, not a guess. Matching the term to your life plans can reduce stress and save money over time. General information only. Mortgage approvals and terms are subject to lender guidelines and current Canadian regulations (OSFI / FSRA).

Monthly homeownership costs go beyond the mortgage payment. Owners should budget for housing, operating, and long-term maintenance expenses to avoid financial strain. Common monthly homeownership costs Mortgage payment Principal and interest based on your loan amount, rate, and amortization Property taxes Often paid monthly through your lender or directly to the municipality Home insurance Required by lenders to protect the property Utilities Electricity, natural gas, water, and waste services Maintenance and repairs A common guideline is 1–3% of the home’s value per year, averaged monthly Condo fees (if applicable) Covers shared building expenses and reserve funds Other possible monthly expenses Internet and cable Security systems Snow removal or lawn care Parking or storage fees Why this matters for affordability Lenders account for some costs when approving a mortgage, but not all. Planning for the full monthly picture helps ensure ownership remains comfortable—not just affordable on paper. Bottom line The true cost of owning a home is the total monthly commitment, not just the mortgage payment. Reviewing all expenses together provides a clearer, more realistic budget. General information only. Mortgage approvals are subject to lender underwriting and current Canadian regulations (OSFI / FSRA).

Neither option is universally better. A short-term mortgage offers flexibility and potential savings, while a long-term mortgage provides payment stability and certainty. The right choice depends on your plans, risk comfort, and cash flow. Short-term mortgages (1–3 years) Best if you value flexibility. Pros Often lower penalties if you break the mortgage early Useful if you plan to sell, refinance, or expect income changes Lets you reassess sooner if rates shift Cons Less payment certainty Renewal risk if rates rise Longer-term mortgages (4–5+ years) Best if you value stability. Pros Predictable payments for budgeting Protection from short-term rate increases Simpler planning Cons Higher penalties if broken early Less flexibility if your situation changes What matters most Before choosing, consider: How long you expect to stay in the home Whether you may refinance, move, or access equity Your comfort with interest-rate changes The penalty structure—not just the rate Many borrowers break their mortgage early, so flexibility often matters more than expected. Bottom line Short terms favour flexibility; longer terms favour certainty. The best mortgage term is the one that fits your life—not just today’s rate. General information only. Mortgage approvals and terms are subject to lender guidelines and current Canadian regulations (OSFI / FSRA).

A fixed-rate mortgage is a mortgage where the interest rate stays the same for the entire term, meaning your payment amount remains predictable, regardless of market rate changes. How a fixed-rate mortgage works With a fixed-rate mortgage: Your interest rate is locked in for the term (commonly 1–5 years) Your regular payment stays the same throughout the term The portion going to principal and interest is predictable This makes budgeting easier, especially in uncertain rate environments. Why borrowers choose fixed rates Fixed-rate mortgages are often chosen by borrowers who: Prefer payment stability Want protection from rising interest rates Plan to stay in the home for several years Value certainty over short-term rate fluctuations Things to be aware of Fixed-rate mortgages often come with higher penalties if broken early Interest Rate Differential (IRD) penalties can be significant Flexibility varies by lender, not all fixed mortgages are the same Understanding the penalty structure is just as important as the rate. Fixed vs. variable (at a glance) Rate stability: Fixed ✔ | Variable ✖ Flexibility: Fixed ✖ | Variable ✔ Exposure to rate changes: Fixed ✖ | Variable ✔ The better option depends on your goals and comfort with risk. Bottom line A fixed-rate mortgage offers certainty and stability, but it trades flexibility for predictability. Reviewing both rate and terms ensures it aligns with your plans. General information only. Mortgage approvals and terms are subject to lender guidelines and current Canadian regulations (OSFI / FSRA).

A variable-rate mortgage is a mortgage where the interest rate can change over time, based on movements in a lender’s prime rate. As rates change, your interest cost changes, which can affect your payment or how quickly you pay down the mortgage. How a variable-rate mortgage works With a variable-rate mortgage: The rate is tied to the lender’s prime rate When prime changes, your interest rate adjusts Depending on the mortgage type, either: Your payment changes, or Your payment stays the same but the portion going to interest and principal changes Both structures are common in Canada. Why borrowers choose variable rates Variable-rate mortgages are often chosen by borrowers who: Are comfortable with some rate movement Value flexibility and lower penalties Expect rates to stay stable or decline over time May sell or refinance before the end of the term Things to watch for Payments can increase if rates rise Some variable mortgages have trigger points where payments must be adjusted Terms and penalty structures vary by lender Understanding how your specific mortgage adjusts is critical. Variable vs. fixed (at a glance) Rate certainty: Variable ✖ | Fixed ✔ Flexibility: Variable ✔ | Fixed ✖ Penalty risk if broken: Lower | Higher Bottom line A variable-rate mortgage offers flexibility and potential savings, but it comes with uncertainty. The right choice depends on your risk tolerance and financial plan. General information only. Mortgage approvals and terms are subject to lender guidelines and current Canadian regulations (OSFI / FSRA).