Mortgages & Financing
A mortgage in Canada typically requires a minimum 5% down payment, passing the stress test, and choosing between fixed or variable rates. Maximum amortization is 25 years for most insured mortgages (extended to 30 years for first-time buyers of new construction as of August 2024) and 30 years for conventional mortgages. The insured mortgage price cap is $1.5 million.
Understanding mortgages and financing is essential for buying and owning property in Canada. KnowYourProperty provides powerful mortgage calculators, expert guides, and AI advice to help you make informed financing decisions at every stage of homeownership.
Key Topics
Mortgage Affordability
Calculate how much home you can afford based on your income, debts, and down payment, including stress test requirements set by Canadian lenders.
Mortgage Payments
Understand how mortgage payments work, the impact of amortization periods, and how to reduce your total interest costs over the life of your mortgage.
Fixed vs. Variable Mortgages
Compare fixed and variable mortgage rates, understand the pros and cons of each, and learn which option is right for your risk tolerance.
CMHC Insurance
Learn about CMHC mortgage default insurance, when it's required, how much it costs, and how it affects your monthly mortgage payments.
Mortgage Renewal
Prepare for your mortgage renewal, understand your options, and learn how to negotiate the best rate when your current term ends.
Refinancing
Explore mortgage refinancing options, when it makes sense to refinance, and how to access your home equity for renovations or investments.
Mortgage & Financing Guides
The Comprehensive Guide to Buying a Home in Canada
Navigate the Canadian real estate market with confidence using our step-by-step guide. From understanding the mortgage stress test to calculating provincial land transfer taxes, we cover everything you need to know to secure your first or next home.
How to Make a Competitive Offer in a Hot Market
Strategies for competing in multiple-offer situations across Canadian real estate markets.
Understanding Mortgage Options in Canada
Fixed vs variable rates, open vs closed mortgages, and how to choose the right option.
Home Inspection: What Buyers Need to Know
A comprehensive guide to home inspections in Canada, including what to check and red flags.
Down Payment Strategies for Canadian Home Buyers
Creative ways to save and source your down payment, including government programs and RRSP withdrawals.
First-Time Home Buyer's Guide to Canadian Real Estate
Everything first-time buyers need to know about purchasing property in Canada, from financing to closing.
Popular Questions
Should I refinance my mortgage in 2024?
## When Refinancing Makes Sense Refinancing can be beneficial if: ### 1. Interest Rate Savings - Your current rate is significantly higher than available rates - A rule of thumb: refinance if you can reduce your rate by at least 0.5-1% - Calculate the break-even point (closing costs ÷ monthly savings) ### 2. Debt Consolidation - Rolling high-interest debt (credit cards, lines of credit) into your mortgage - This can reduce overall interest costs significantly - Be careful not to accumulate new debt ### 3. Accessing Home Equity - Home renovations that add value - Investment opportunities - Education costs ## Costs to Consider - **Mortgage penalty**: Can be 3 months' interest or the Interest Rate Differential (IRD), whichever is greater - **Appraisal fees**: $300-$500 - **Legal fees**: $800-$1,500 - **Discharge fee**: $200-$400 ## When to Wait - If your penalty is very high (especially with fixed-rate mortgages) - If you're close to your renewal date - If you plan to move within 2-3 years ## Tip Contact a mortgage broker to compare options across multiple lenders. They can calculate whether refinancing makes financial sense for your specific situation.
423 views · 28 upvotesWhat Is a Good Cap Rate in Canada?
What cap rate is considered good for investment property in Canada?
0 views · 3 upvotesHow Much Down Payment Do I Need in Canada?
What is the minimum down payment required to buy a home in Canada?
0 views · 4 upvotesHow Much House Can I Afford in Canada?
How much house can I afford in Canada based on my income, down payment, and debt?
0 views · 5 upvotesRelated Resources
First-Time Home Buyer Checklist
A comprehensive step-by-step checklist covering everything from mortgage pre-approval to closing day for Canadian first-time buyers.
checklistFirst-Time Home Buyer Checklist
A comprehensive checklist covering everything from saving for a down payment to getting the keys to your new home.
checklistClosing Costs Worksheet
A fillable worksheet to estimate all closing costs when buying a home, from land transfer tax to legal fees.
templateFrequently Asked Questions
The minimum down payment is 5% for homes under $500,000. For homes between $500,001 and $1,499,999, it's 5% on the first $500K and 10% on the remainder. Homes priced at $1.5 million or more require 20% down (CMHC insurance is not available above $1.5M).
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