Question 1

What is the first step to getting a mortgage in Canada?

Accepted Answer

The first step is to get pre-approved for a mortgage. With Lenderoo, you're matched with a top mortgage professional who reviews your financial situation, credit score, income, and debts to determine how much you can borrow. Pre-approval gives you a clear budget and shows sellers you're a serious buyer.

Question 2

How much down payment do I need to buy a home in Canada?

Accepted Answer

The minimum down payment depends on the purchase price: 5% for homes up to $500,000; 5% on the first $500,000 plus 10% on the portion between $500,000 and $1 million; and 20% for homes over $1 million. However, putting down 20% or more allows you to avoid CMHC mortgage insurance premiums.

Question 3

What is the difference between a fixed and variable rate mortgage?

Accepted Answer

A fixed-rate mortgage has an interest rate that stays the same for the entire term, providing payment stability. A variable-rate mortgage has a rate that fluctuates with the Bank of Canada's prime rate, which can result in lower costs when rates drop but higher payments when rates rise.

Question 4

What credit score do I need to qualify for a mortgage?

Accepted Answer

While some lenders may approve mortgages with scores as low as 600, most prefer a minimum credit score of 680 for the best rates. A score of 700+ will give you access to competitive rates from major lenders. If your score is lower, Lenderoo can match you with a mortgage professional who works with alternative lenders, or help you improve your credit before applying.

Question 5

How much does Lenderoo cost?

Accepted Answer

For most residential mortgages, Lenderoo is free to you. We're paid by the lender you ultimately choose, so there's no cost to shop 40+ lenders and get matched with a top mortgage professional. This allows you to benefit from expert mortgage advice without added expense.

Question 6

What is a mortgage stress test?

Accepted Answer

The mortgage stress test requires borrowers to qualify at a rate higher than their actual mortgage rate (currently the greater of 5.25% or your rate plus 2%). This ensures you can still afford payments if rates increase. It applies to all insured mortgages and uninsured mortgages from federally regulated lenders.

Question 7

Can I get a mortgage if I'm new to Canada?

Accepted Answer

Yes! Lenderoo connects you with mortgage professionals who offer specialized new-to-Canada mortgage programs. You'll typically need to be a permanent resident or have a valid work permit, show a job offer or employment in Canada, and may need a larger down payment (35% is common). Some programs allow using foreign credit history and income.

Question 8

What's the difference between refinancing and renewing?

Accepted Answer

Renewing is simply continuing your mortgage with the same or different lender when your term ends, keeping the same mortgage amount. Refinancing involves taking out a new mortgage to replace your existing one, potentially for a larger amount (up to 80% of home value), allowing you to access equity for other purposes.

Frequently Asked Questions

Getting Started / First-Time Buyers

Still Have Questions?

Call Us

Live Chat

Email Us

Explore Our Tools & Resources

Frequently Asked Questions

Getting Started / First-Time Buyers

Still Have Questions?

Call Us

Live Chat

Email Us

Explore Our Tools & Resources

Frequently Asked Questions

Getting Started / First-Time Buyers

What is the first step to getting a mortgage in Canada?

How much down payment do I need to buy a home in Canada?

What is CMHC insurance and when do I need it?

How much can I afford to borrow?

What credit score do I need to qualify for a mortgage?

What documents do I need to apply for a mortgage?

Can I buy a home if I'm self-employed?

How long does it take to get approved for a mortgage?

What's the difference between pre-qualification and pre-approval?

Should I get a mortgage before finding a house?

Still Have Questions?

Call Us

Live Chat

Email Us

Explore Our Tools & Resources

Frequently Asked Questions

Getting Started / First-Time Buyers

What is the first step to getting a mortgage in Canada?

How much down payment do I need to buy a home in Canada?

What is CMHC insurance and when do I need it?

How much can I afford to borrow?

What credit score do I need to qualify for a mortgage?

What documents do I need to apply for a mortgage?

Can I buy a home if I'm self-employed?

How long does it take to get approved for a mortgage?

What's the difference between pre-qualification and pre-approval?

Should I get a mortgage before finding a house?

Still Have Questions?

Call Us

Live Chat

Email Us

Explore Our Tools & Resources