How to Qualify for a Mortgage in Canada

How to Qualify for a Mortgage in Canada (Part 1)

Buying a home isn’t just about what you can afford—it’s about what lets you live well. The right move is one that protects your future, not just unlocks a front door.

You’ve been scrolling home listings for weeks, dreaming of your first place. You’re feeling ready—but before diving in, it’s time for a financial reality check. Can you afford the home you want? Where’s your down payment coming from? Will a lender approve your mortgage?

Buying a home is one of the biggest financial decisions of your life. Here’s how to prep—from saving a down payment to handling monthly costs.

Understanding Down Payments
In Canada, the minimum down payment is 5%—but that doesn’t mean it’s ideal. Anything under 20% means you’ll also pay mortgage default insurance (CMHC insurance).

Here’s how that stacks up:

  • 5% down = 4.0% premium

  • 10% down = 3.1%

  • 15% down = 2.8%

  • 20%+ = No premium

A larger down payment = less interest over time. Still, if 5% gets you in the market, that’s a start. What matters is making an informed choice.

How to Save for a Down Payment
First-time buyers in Canada can benefit from:

  • FHSA: Save up to $8,000/year, tax-deductible, tax-free withdrawals

  • Home Buyers’ Plan (HBP): Withdraw up to $35,000 from your RRSP

  • TFSA: Tax-free growth and withdrawals—no repayment needed

  • First-Time Home Buyers’ Tax Credit: Claim up to $1,500

“Don’t just save—strategically save,” says Sheldon Craig, financial planner.

More Than Just the Down Payment
Don’t forget:

  • Closing costs: Legal, land transfer, title insurance = 3–4%

  • Home maintenance: Budget 1% annually for repairs

  • Emergency fund: Life still happens outside of homeownership

Watch for Part 2

 

Ready to Buy, Sell, Rent, or Invest in Simcoe County?

Whether you’re buying your first home, renting, investing, or preparing to sell, the Shannon Murree Group | Real Estate With Impact – RE/MAX Hallmark Chay provides inclusive, professional guidance throughout Simcoe County. As the only McGillivray Trusted Agent in Simcoe County for Barrie, Innisfil, Oro, and Orillia, we offer trusted insight, strong community connections, and a no-pressure approach that puts your goals first.

Let’s connect. Your move matters—and we’re here to make it count.

Also, feel free to connect with us real-time on social media!

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