Question 1

Should I go to my bank or a mortgage broker first?

Accepted Answer

Either is possible, but a bank can only offer you its own mortgage products. A mortgage broker can compare options from multiple lenders and help you understand which lender, rate, and mortgage features may fit your situation best.

Question 2

How much money do I actually need to buy a home?

Accepted Answer

You’ll need money for more than just the down payment. Depending on your situation, you may also need funds for closing costs such as legal fees, land transfer tax, adjustments, and sometimes an appraisal or inspection. I can help you figure out the full amount you should have available before you start shopping.

Question 3

Can I still get a mortgage if my bank said no?

Accepted Answer

Possibly. Different lenders have different rules, and a bank decline doesn’t always mean you’re out of options. I’ll look at the full picture — income, credit, down payment, debts, and the property — and see what alternatives may be available.

Question 4

Can I use the equity in my home to pay off debt?

Accepted Answer

Yes, in some cases refinancing can let you use the equity in your home to consolidate higher-interest debts into one mortgage payment. It can reduce monthly payments, but it also means moving debt into your mortgage, so I’ll help you compare the numbers and make sure it actually makes sense.e.

Question 5

What’s the difference between a pre-approval and a final mortgage approval?

Accepted Answer

A pre-approval is an estimate of what you may qualify for based on the information available at the time. Final approval only happens after the lender reviews the actual property, your documents, and all conditions. That’s why I always recommend keeping a financing condition in your offer until the mortgage is fully approved.

Question 6

Should I choose a fixed or variable mortgage rate?

Accepted Answer

It depends on your comfort level, budget, and plans. A fixed rate gives you predictable payments, while a variable rate can move up or down with prime. I’ll walk you through the pros and cons of both so you can choose what actually fits you.

Question 7

How much can I afford to borrow?

Accepted Answer

Your mortgage amount depends on more than just your income. Lenders also look at your debts, credit, down payment, property taxes, heating costs, and the mortgage stress test. I can review the full picture and give you a more realistic idea of what price range may work before you start shopping.

Question 8

I’m pre-approved. Can I make an offer without a financing condition?

Accepted Answer

I generally don’t recommend it. A pre-approval is not a final mortgage approval. Once you have an accepted offer, the lender still needs to review the actual property and confirm that your application meets all of their conditions. Keeping a financing condition gives you time to get that final approval before you’re committed to the purchase. CMHC specifically notes that even with a mortgage pre-approval, buyers still need final mortgage approval during the conditional-offer period.

Question 9

Can I get a mortgage if I’m self-employed?

Accepted Answer

Yes, but the way your income is reviewed can be different than for someone with a regular salary. Depending on the lender and your situation, we may be able to use business income, add-backs, or other documentation to show your true earning picture. I’ll help you figure out what lenders will actually look at.

Question 10

What happens if I’m buying and selling at the same time?

Accepted Answer

It can absolutely be done, but the timing matters. We’ll look at your sale proceeds, your existing mortgage, the new purchase, closing dates, and whether you may need bridge financing. I’ll help you map it out so there are fewer surprises between the sale of your current home and the purchase of the next one.

Question 11

Do I need perfect credit to get a mortgage?

Accepted Answer

Not necessarily. Credit is important, but lenders look at more than just your score. Income, debts, down payment, recent credit history, and the overall application all matter. Even if your credit isn’t perfect, there may still be options worth exploring.

Question 12

Should I pay off debt or put more money toward my down payment?

Accepted Answer

It depends. Sometimes paying down certain debts can improve how much you qualify for more than using that same money as additional down payment. I can run both scenarios and show you which option puts you in the stronger position.

Question 13

Can I refinance before my mortgage term is finished?

Accepted Answer

Yes, you may be able to refinance before maturity, but there can be a penalty for breaking your existing mortgage. The important question is whether the savings or benefits of refinancing outweigh that cost.

Question 14

Should I be keeping the lowest mortgage rate always?

Accepted Answer

Not always. Rate matters, but so do penalties, prepayment privileges, portability, restrictions, and flexibility. A slightly lower rate can sometimes come with conditions that cost you more later.

Question 15

Why would I use a mortgage broker instead of just going to my bank?

Accepted Answer

A bank can offer you its own mortgage products. As a mortgage agent, I can look at options from multiple lenders and help you compare the rate, features, and overall fit for your situation. If one doesn't approve your mortgage, I can simply try with the next without you having to start over.

Question 16

Do mortgage brokers only work with private lenders?

Accepted Answer

No. Mortgage brokers work with a wide range of lenders, including major banks, credit unions, monoline lenders, alternative lenders, and private lenders when needed. The goal is to find the lender and mortgage that best fit your situation — not to push you toward private lending.

Question 17

What documents do I need to get approved for a mortgage?

Accepted Answer

Most lenders will want to see proof of income and employment, identification, details about your debts and assets, and confirmation of where your down payment and closing costs are coming from. The exact documents can vary depending on whether you’re salaried, self-employed, retired, or have other types of income.

Question 18

How does the mortgage stress test affect how much I can borrow?

Accepted Answer

The stress test means you have to qualify at a higher rate than the rate you may actually receive. This can reduce the amount you qualify for, which is why it’s important to look at your full financial picture instead of relying only on an online calculator.

Question 19

What happens after my offer is accepted?

Accepted Answer

Once your offer is accepted, the lender still needs to review the property and finalize your mortgage approval. There may also be an appraisal, home inspection, insurance arrangements, legal work, and other conditions to complete before closing. I’ll help you understand what happens next and what needs to be done in what order.

Question 20

How long does it take to get a mortgage approved?

Accepted Answer

It depends on the lender, the complexity of the file, and how quickly all the required documents are provided. Some approvals can move very quickly, while others take longer if there are additional questions, an appraisal, or more documentation needed.

Question 21

Does getting pre-approved hurt my credit score?

Accepted Answer

A mortgage pre-approval may involve a credit check, which can result in a hard inquiry on your credit report. One inquiry usually has a relatively small impact, and mortgage-related credit inquiries made within a certain shopping period may be treated together for scoring purposes.

Question 22

Can my down payment be gifted?

Accepted Answer

Yes, in many cases a down payment can come from an immediate family member as a gift. The lender will usually require a signed gift letter and proof of the funds. The exact requirements can vary depending on the lender and mortgage program.

Question 23

Do I have to pay a mortgage broker?

Accepted Answer

In many residential mortgage transactions, there is no direct broker fee to the client because the lender pays the brokerage. In some situations, such as certain alternative or private mortgages, a brokerage fee may apply. If there is ever a fee, it should be clearly explained before you proceed.

Question 24

What should I avoid doing after I’m pre-approved?

Accepted Answer

Try not to take on new debt, finance a vehicle, open new credit accounts, miss payments, or make major changes to your employment without discussing it first. Changes to your finances before closing can affect your final mortgage approval.

Mortgage FAQ Ottawa: Common Questions Answered