Plain-language mortgage school.
Ten short guides, a searchable glossary and straight answers — so the first conversation starts with you knowing the terms.
10 guides · 18 terms · 10 answersThe essentials, in two minutes each.
Open any guide for the key points.
01First-time buyer guideFrom savings to keys
- Check your credit and get pre-approved first
- Use FHSA and RRSP HBP together where you can
- Budget closing costs of 1.5–4% on top of the down payment
- Firm up only after financing and inspection are confirmed
02Pre-approval checklistWhat to gather first
- Photo ID, job letter and two pay stubs
- Two years of NOAs (self-employed: T1 Generals)
- 90 days of down payment history
- A list of debts and monthly payments
03Fixed vs variableChoosing your rate type
- Fixed: steady payment, higher potential penalty (often IRD)
- Variable: moves with prime, penalty usually three months’ interest
- Consider your plans for the next five years
- Ask about conversion options on variable terms
04Refinance vs renewalKnow the difference
- Renewal happens at the end of a term, no penalty
- Refinance changes the amount or structure, and requalifies
- Refinancing mid-term can trigger a prepayment penalty
- Switching at maturity moves lenders without a penalty
05Self-employed prepPackage your income
- File taxes on time and pay any balance owing
- Keep business and personal accounts separate
- Have two years of financials ready
- Talk to your accountant about write-offs before you apply
06Newcomer questionsBuying soon after arriving
- Programs exist for permanent residents and many work-permit holders
- Foreign credit reports can help
- A larger down payment widens options
- Keep records of funds moved to Canada
07Home equity basicsHow equity grows and is used
- Equity = home value minus mortgage balance
- Refinance up to 80% of value; HELOC up to 65%
- Equity can fund renovations, investing or debt payoff
- Borrowing against equity still has to be repaid
08Closing costs in CanadaBudget for the final week
- Land transfer tax (rebates for some first-time buyers)
- Legal or notary fees and title insurance
- Inspection, appraisal and adjustments
- PST on the insurance premium in some provinces
09Credit score preparationStrengthen your profile
- Pay every bill on time
- Keep card balances below 30% of limits
- Avoid new credit before applying
- Check your Equifax and TransUnion reports for errors
10Mortgage penaltiesBreaking a term early
- Variable: usually three months’ interest
- Fixed: greater of three months’ interest or IRD
- Porting or blend-and-extend can avoid a penalty
- Ask for the penalty in writing before deciding
Mortgage words, decoded.
Type to filter the list.
The total time to pay off the mortgage, often 25 or 30 years.
The length of your current contract with a lender, often 1 to 5 years.
The day your term ends and you renew, switch or pay out.
Housing costs as a share of gross income. The insured limit is 39%.
Housing costs plus all other debts as a share of income. The insured limit is 44%.
Qualifying at the higher of your rate plus 2% or 5.25%.
Insurance (CMHC, Sagen, Canada Guaranty) required with less than 20% down.
Mortgage amount divided by the home’s value.
A revolving line of credit secured by your home’s equity.
Interest-rate differential, a common fixed-rate prepayment penalty.
Moving your mortgage to a new home without a penalty.
Extra payments allowed each year without a penalty.
The lender’s benchmark rate that variable mortgages follow.
Moving the same balance and amortization to a new lender at renewal.
Combining your current rate with a new one to avoid a penalty.
A conditional lender review that holds a rate while you shop.
First Home Savings Account: $8,000 a year, $40,000 lifetime.
Taxes, legal fees and adjustments paid on closing day.
No matching terms. Try another word.
Straight answers.
Still unsure? Ask us directly
Do I need a pre-approval before shopping?
It is strongly recommended. It sets a realistic budget, holds a rate and makes your offer stronger, though it is not a final approval.
Pre-qualification vs pre-approval?
Pre-qualification is a quick estimate from what you tell us. Pre-approval reviews credit and documents and is far more reliable.
Can self-employed borrowers get approved?
Yes. Expect more documentation, and some lenders offer programs for newer businesses or stated income.
Can newcomers qualify?
Often, yes. Programs for permanent residents and many work-permit holders exist, with requirements that vary by lender and insurer.
What is a mortgage renewal?
At the end of your term you agree to a new rate and term, with your current lender or a new one.
Refinance vs renewal?
Renewal happens at maturity. A refinance changes the mortgage amount or structure and requires requalifying.
Can I access my home equity?
Through a refinance, HELOC or second mortgage, subject to qualification and available equity.
What is private or alternative lending?
Lending outside the big banks for borrowers who do not fit standard rules. It costs more and is best used short term.
Is there a fee for your service?
On most residential mortgages the lender pays the brokerage. If a fee applies, it is disclosed in writing before you commit.
Are the calculators accurate?
They use Canadian compounding and federal rules, but they are estimates. Lender rules and your full file decide the final numbers.
A clear plan before you sign anything.
Buying, renewing or refinancing — a 30-minute review shows your options, the trade-offs and the documents to gather first. No obligation.