FAQS
BELOW YOU CAN BROWSE SOME FREQUENTLY ASKED QUESTIONS
What is minimum down payment to buy a home?
Minimum down payment when buying a primary residence is 5% on the first $500,000 and 10% on the amount above $500,000. A $600,000 purchase price requires 5% of $500,000 ($25,000) + 10% of $100,000 ($10,000) for a total of $35,000. If the home is $1,000,000 or more, the minimum down payment becomes 20%.
Do I need 20% when I’m buying my second home?
Minimum down payment rules apply for anyone purchasing their primary residence. For an investment property, a 20% down payment is required.
Does a higher credit score get me a better rate?
No. As long as a borrower meets the minimum credit score requirement to qualify, they will have access to the best rates. However, if a credit score falls below conventional lending requirements, Mortgage Navigator can explore alternative lenders who may offer more flexible policies, though these typically require 20%+ down payment and come with higher interest rates.
I’m currently on Maternity leave, can we use my income to qualify?
Yes. Income can be used as long as there is a confirmed return-to-work date verified by the employer in a letter.
Should I wait until I have 20% down payment to buy a home?
It is always beneficial to put 20% down if possible, but that doesn’t mean waiting is the best choice—especially if it will take 12–24 months to save that amount.
What is CMHC Insurance?
Mortgage Default Insurance is commonly referred to as CMHC insurance, though there are two other providers also used regularly: Sagen and Canada Guarantee. The cost of insurance is the same with each provider, and the specific insurer is chosen by the lender.
Why should I use a mortgage broker?
Mortgage brokers in Canada have access to a wide variety of lending options, including major banks, credit unions, monoline lenders, and alternative lenders. With today’s stricter qualification rules, using a broker provides access to multiple solutions. Many people assume their branch will provide the best care, but the reality is that banks often give better offers to new clients while loyal customers may pay a premium at renewal. Banks have millions of clients, so personal loyalty is not always reciprocated—whereas a mortgage broker works directly for the client.