Whether you're buying your first home or moving into your next, I'll help you explore mortgage options that align with your finances and long-term goals. From reviewing your borrowing capacity to coordinating your application, I'll provide clear guidance and keep you informed throughout the process.
Your approval and your budget
The price a lender will approve can be higher than the price that fits your monthly budget. I'll look at both before you start shopping.
The costs of buying
Upfront, you'll need:
- Your down payment: at least 5% of the first $500,000 and 10% of the portion above that, or 20% on homes priced at $1.5 million or more
- Default insurance if you put down less than 20%. The premium is added to your mortgage, but the Ontario sales tax on it is paid at closing
- Land transfer tax, plus Toronto's municipal land transfer tax if the home is in the city
- Legal fees, title insurance, a home inspection and closing adjustments
Closing costs typically run about 1.5% to 4% of the purchase price. Land transfer tax is the largest part of that in the GTA.
The costs of owning
Beyond the mortgage payment, plan for property tax, home insurance, utilities, condo fees if there are any, and maintenance. A common rule of thumb is to set aside about 1% of the home's price each year for repairs.
Choosing your mortgage
Fixed or variable: a fixed rate keeps your payment the same for the term, which helps when your budget is tight. A variable rate moves with the lender's prime rate, so your costs can go up or down.
Term: a shorter term lets you change the mortgage sooner, while a longer term locks in your payment for longer. The right choice depends on your plans and how much payment change you can handle.
Payment frequency: accelerated weekly or biweekly payments add up to roughly one extra monthly payment a year, which shortens your amortization and cuts the interest you pay.
Already own a home?
If you're moving up or downsizing before your term ends, check whether your mortgage is portable. Porting lets you take your current rate and terms to the new property without breaking the mortgage. If you can't port, breaking a mortgage with a fixed rate usually costs the greater of three months' interest or the interest rate differential, so it's worth knowing that number before you list.
All mortgages are subject to lender approval.