Paying off your mortgage early is achievable with strategies like making larger or bi-weekly payments, refinancing at lower rates, or applying lump-sum payments to principal. Additional methods include living below your means, renting out space, starting side hustles, downsizing, recasting your mortgage, exploring government programs, and seeking family help. Consistent effort and budgeting can accelerate mortgage freedom and save thousands in interest.
Self-employed individuals can successfully obtain a mortgage by demonstrating financial stability and trustworthiness. Key steps include providing two years of income proof through bank statements, tax Notices of Assessment, and maintaining a good credit score. Essential documents also include HST/GST payment proof, business licenses, and client contracts. It's crucial to manage tax deductions wisely, as excessive claims can lower perceived income. Engaging with a credit union can offer favorable mortgage options and additional banking benefits.
A larger down payment directly lowers your mortgage size and overall Real Estate borrowing costs.
Paying more upfront reduces long-term interest charges and may save thousands over the loan term.
Smaller down payments increase total repayment amounts, even when monthly payments appear manageable.
Home-buying programs and incentives can help first-time buyers accumulate larger down payments.
Planning early and minimising debt improves affordability and strengthens your Real Estate investment position.
In Canada, a home buyer’s minimum down payment depends on the property’s total purchase price.
Homes costing $500,000 or less require a minimum 5% down payment from personal savings.
Properties between $500,000 and $1.5 million need 5% on the first $500,000 and 10% thereafter.
Homes priced above $1.5 million require a full 20% down payment to qualify for a mortgage.
Buyers with weak credit or self-employment status may face higher down payment requirements.
With 60% of mortgages up for renewal by 2026 and 40% facing higher rates, homeowners should shop around instead of automatically renewing. Despite a slowed housing market and stable Bank of Canada rates, potential rate cuts may arise later this year. Homeowners are advised to start early, compare offers, consider refinancing or HELOCs, and review mortgage terms to suit their financial goals and avoid costly penalties.
Newcomers must build Canadian credit history early—secured cards, on-time bills, and monitored reports boost approval.
Lenders assess credit, income, job stability, debt ratios, and down payments—typically 5% to 20%.
Budgeting for mortgage readiness includes saving 20% down payment, taxes, insurance, and maintenance costs.
Mortgage brokers and real estate agents help newcomers secure best rates and navigate market complexities.
Special newcomer mortgage programs and fixed or high-ratio options make homeownership more attainable in Canada.
Homeowners may find their mortgage contracts unsuitable and consider breaking them, which can incur penalties. Breaking a mortgage contract allows for repayment or refinancing but typically involves fees based on interest rates. Closed mortgages have stricter penalties compared to open ones. Penalties vary, with fixed-rate mortgages often incurring higher costs. Homeowners should evaluate their reasons for breaking the contract, such as refinancing for better rates or moving homes, and consult professionals for accurate penalty calculations and alternatives.
For those renewing mortgages soon, understanding terms and options can ease rate shock. Use tools like mortgage renewal calculators to compare offers and total costs. Consider adjusting mortgage terms or switching to variable rates to stay competitive. Higher payments may require strategies like prepayments, extending amortization, or cutting expenses. If renewal is declined, seek new lenders before considering selling your home.
Self-employed homebuyers often face mortgage challenges due to fluctuating income and tax deductions. Modern self-employed loans, like bank statement, profit & loss, and asset depletion loans, assess real cash flow rather than just tax returns. Key approval factors include consistent deposits, good credit, business stability, low debt, and savings. Expert guidance and organized documentation improve approval chances and simplify the process.
Moving homes is harder today as rising rates and stricter lending rules limit flexibility for homeowners.
Mortgage porting lets you transfer your existing loan, rate, and term to a new property.
Most lenders require closing both sales within 30–120 days and requalifying under current standards.
Porting helps avoid thousands in penalties and keeps lower payments if rates have since increased.
Still, it limits lender choice and flexibility—careful timing and contract review are essential before moving.