Arranging Your Mortgage

Buying a home usually means taking out a mortgage. That means you borrow money to buy a home, using that home as collateral for the mortgage.

The amount of mortgage you can afford depends on your income, the down payment, current mortgage rates, and the amortization period you choose. Most lenders want borrowers to keep a gross-debt-service-to-income ratio of 40 per cent or less, coupled with a housing-cost-to-income ratio of 32 per cent or less. Our calculator’s page can help you with determining how much you qualify for!

You may be able to purchase a home with a down payment as small as 5 per cent, thanks to several High Ratio Insurance programs. First-time home buyers may also be eligible to withdraw up to $20,000 tax-free from an RRSP to use as a down payment. The funds must be repaid within fifteen years. Lenders can provide you with a pre-approved mortgage that shows approximately what mortgage loan you can afford.

Make sure you have a mortgage you can live with. There are lots of options available that let you customize your mortgage to suit your financial goals and needs. We offer a free pre-approval service with up to one percent off the posted bank rates. Just complete one of the two forms below and take the first step to home ownership!