CALGARY IS CALLING!

The mortgage industry is coming together in Calgary, October 17–19.

Don’t miss your chance to be part of Canada’s National Mortgage Conference.

HOMEBUYER RESOURCES

Getting Started

Buying a home is one of the biggest financial decisions you will make. Understanding the mortgage process before you begin can help you make informed choices and feel more confident throughout your homebuying journey.

Different consumers are at different stages of life, with different mortgage needs and many mortgage products to choose from. Working with a mortgage professional can help you find a solution that matches your needs and circumstances.

Above all, you need to be comfortable with your mortgage choice.

Homebuyers reviewing mortgage information with a professional

START WITH THE BASICS

Prepare before you shop

There is no substitute for being prepared. Educating yourself and understanding the facts can help you make the right mortgage decision, avoid unnecessary surprises and increase your homebuying confidence.

BEFORE YOU BEGIN

Key Questions to Ask

When speaking with a mortgage professional, ask questions that help you understand their role, how they work and whether they are the right fit for your needs.

What is your role in helping me buy a house?

What products do you offer?

Why are you recommending this particular mortgage?

What is your relationship with the lender?

How are you compensated?

How long have you been in business?

May I see some references?

How long will it take to process my application?

What documents do I need to provide?

YOUR FINANCIAL PROFILE

Credit Score

A credit score is a summary of your credit history and how consistently you pay your financial obligations. It includes information about your credit accounts as well as employment and personal financial information.

A strong credit history and credit score can be important when purchasing a home. Your score may influence your ability to borrow, the interest rate you are offered and how quickly your mortgage application can move through the approval process.

Equifax and TransUnion are the two principal credit bureaus in Canada. Their resources can help you understand your credit report, obtain a copy and learn how to improve your credit score if necessary.

Equifax → TransUnion →

KNOW YOUR RANGE

Pre-Approval and Pre-Qualification

Obtaining a pre-approval or pre-qualification can help you understand how much you may be able to borrow and avoid focusing on homes that are outside your price range.

Pre-Approval

A pre-approval may provide a rate guarantee for a set period of time. The current page notes that this period is typically 90 days.

Pre-Qualification

A pre-qualification can help estimate what you may be able to borrow, but generally does not include a rate guarantee.

What is a guarantor?

A guarantor signs the mortgage documents along with the borrower but does not have an ownership interest in the property.

UNDERSTANDING YOUR MORTGAGE

The Elements of a Mortgage

Most homebuyers borrow part of the purchase price of their home. The property acts as security for that loan, which is what creates the mortgage.

Down Payment

Your mortgage amount is generally the purchase price of the home less the money you contribute as a down payment.

Principal & Interest

Mortgage payments are made up of principal, the amount borrowed, and interest, the cost of borrowing the money.

Borrow Less, Pay Less Interest

The larger your down payment, the less you need to borrow and the less interest you will generally pay over the life of the mortgage.

20% or More Down

The existing page describes a mortgage with a down payment of 20% or more of the purchase price as a conventional mortgage.

Less Than 20% Down

A down payment below 20% is described as a high-ratio mortgage and requires mortgage default insurance to protect the lender.

Mortgage Default Insurance

Mortgage default insurance protects the lender if the borrower is unable to repay the loan.

Use for Footer Code

MPC AI Chat

Getting Started

Prepare before you shop

Key Questions to Ask

Credit Score

Pre-Approval and Pre-Qualification

Pre-Approval

Pre-Qualification

The Elements of a Mortgage

Down Payment

Principal & Interest

Borrow Less, Pay Less Interest

20% or More Down

Less Than 20% Down

Mortgage Default Insurance

Continue exploring homebuyer resources