Mortgage Myths & FAQs
Let's clear up the confusion. Here's the truth about Canadian mortgages — and answers to the questions I hear most often.
8 Mortgage Myths — Busted
Don't let these common misconceptions hold you back from homeownership.
Myth: "I need a 20% down payment to buy a home"
Truth: You can buy with as little as 5% down in Canada. While 20% avoids mortgage insurance (CMHC), many buyers start with less and build equity over time.
💡 Let's calculate your minimum down payment and explore your options.
Myth: "My bank will always give me the best rate"
Truth: Banks offer their own products only. As a mortgage agent, I compare rates from 50+ lenders — often finding better rates than your bank's 'best offer.'
💡 Even if you've talked to your bank, get a second opinion. It costs nothing.
Myth: "I need perfect credit to get a mortgage"
Truth: While good credit helps, many lenders work with credit scores from 600-680. Alternative lenders and private options exist for lower scores too.
💡 Let me pull your credit and show you realistic options.
Myth: "Being self-employed means I can't get a mortgage"
Truth: Self-employed Canadians get approved every day. Special programs exist that use bank statements, stated income, or business documentation instead of traditional T4s.
💡 I specialize in self-employed mortgages. Let's explore your options.
Myth: "Pre-approval guarantees my mortgage"
Truth: Pre-approval is a strong indicator, but final approval depends on the property appraisal and verification of your documents. Conditions can still apply.
💡 I'll explain exactly what your pre-approval covers and any conditions to watch for.
Myth: "Variable rates are always risky"
Truth: Variable rates often save money over the full term. The key is understanding your risk tolerance and having a strategy for rate changes.
💡 Let's compare fixed vs. variable scenarios for your specific situation.
Myth: "I should wait until rates drop to buy"
Truth: Timing the market is nearly impossible. Historically, buyers who waited for 'better rates' often faced higher home prices that offset any rate savings.
💡 Let's run the numbers on your situation — waiting isn't always the best strategy.
Myth: "Mortgage agents charge fees I have to pay"
Truth: For most transactions, my services are completely free to you. Lenders pay the broker fee. You only pay in rare cases (like private mortgages or complex files).
💡 I'm transparent about any costs upfront. No surprises.
Common Objections I Hear
Sound like you? Here's my honest response.
The Nervous First-Timer
"I've never done this before. I don't even know where to start."
That's exactly why you want a mortgage agent. I guide first-time buyers through every step, explain everything in plain language, and make sure you never feel lost. We'll start with a simple conversation about your goals.
The Bank Loyalist
"I've been with my bank for 20 years. They'll take care of me."
Your loyalty is admirable, but banks aren't loyal back — they offer the same rates to new customers. Let me show you what other lenders offer. If your bank truly has the best deal, I'll tell you to stay. No ego here.
The Credit Worrier
"My credit took a hit during COVID / divorce / job loss. I'm probably not approved."
You might be surprised. I work with lenders who understand life happens. Let me review your credit and show you real options — not what you assume is possible.
The DIY-er
"I can just apply online myself. Why do I need an agent?"
You can, but should you? Online applications don't negotiate. They don't know which lender suits your situation. They don't catch mistakes that delay your closing. I add value — and I'm free.
Frequently Asked Questions
Quick answers to the questions I get most often.
How much can I afford to borrow?
This depends on your income, debts, and the current stress test rate. Generally, your total debt payments (including mortgage) shouldn't exceed 44% of your gross income. I can give you an exact number with a quick pre-approval.
What's the difference between fixed and variable rates?
Fixed rates stay the same for your entire term (typically 5 years), providing payment certainty. Variable rates fluctuate with the Bank of Canada's prime rate — lower risk, potentially lower cost, but less predictability. I can help you choose based on your risk tolerance.
How long does the mortgage process take?
Pre-approval can happen in 24-48 hours. Once you have an accepted offer on a property, closing typically takes 30-90 days depending on conditions. Rush closings are possible in some cases.
What documents do I need to apply?
Typically: government ID, recent pay stubs, T4s and NOAs (2 years), bank statements (90 days), and details about your down payment source. Self-employed applicants need additional business documents.
Can I break my mortgage early?
Yes, but penalties apply. Fixed-rate penalties are usually the greater of 3 months' interest or the Interest Rate Differential (IRD). Variable penalties are typically just 3 months' interest. I can calculate your specific penalty.
What is mortgage default insurance (CMHC)?
If your down payment is less than 20%, you're required to have mortgage default insurance. This protects the lender if you default. The premium (1.8% to 4% of the mortgage) is added to your loan.
How does the stress test work?
To qualify, you must prove you can afford payments at the higher of your contract rate + 2%, or the Bank of Canada's benchmark rate (currently around 5.25%). This ensures you can handle rate increases.
What credit score do I need?
Most A-lenders prefer 680+. B-lenders work with 600-680. Below 600, private lenders may be an option. Credit isn't everything — income, down payment, and property type also matter.
Still Have Questions?
I love answering mortgage questions. Reach out — there's no such thing as a dumb question.