The Complete Ontario Mortgage Guide
Everything you need to know about getting a mortgage in Ontario, compiled by Lez Gomez from 15+ years of experience helping families across Toronto, Mississauga, Hamilton, Ottawa, and beyond.
Getting Pre-Approved
Before you start house-hunting in Ontario, getting pre-approved is essential. Lez Gomez works with 50+ lenders to find you the best pre-approval, locking in your rate for up to 120 days. A pre-approval tells sellers you are a serious buyer and gives you a clear budget whether you are shopping in Toronto, Mississauga, Hamilton, or Ottawa.
Key Takeaways:
- Gather pay stubs, T4s, and bank statements
- Check your credit report before applying
- A pre-approval is free with Lez Gomez
- Pre-approval does not commit you to a lender
Understanding Mortgage Types
Ontario buyers have access to several mortgage types. Fixed-rate mortgages offer predictable payments. Variable-rate mortgages can save money when rates drop. Open mortgages allow penalty-free prepayments. Lez Gomez analyzes your financial situation and recommends the right type for your goals, whether you are a first-time buyer in Brampton or refinancing in Barrie.
Key Takeaways:
- Fixed rates: stability for 1-5 year terms
- Variable rates: prime minus discounts
- Open vs closed: flexibility vs lower rates
- Hybrid/split mortgages available
Down Payments & CMHC Insurance
The minimum down payment in Canada is 5% for homes under $500K, 10% on the portion between $500K-$1.5M, and 20% for homes over $1.5M. If your down payment is under 20%, you will need CMHC mortgage default insurance. Lez Gomez helps Ontario buyers understand all costs upfront so there are no surprises on closing day.
Key Takeaways:
- RRSP Home Buyers Plan: withdraw up to $60,000
- First-Time Home Savings Account (FHSA)
- Gifted down payments are accepted by most lenders
- Land transfer tax rebates for first-time buyers
Closing Costs in Ontario
Beyond the down payment, Ontario buyers should budget 1.5%-4% of the purchase price for closing costs. These include land transfer tax (Ontario and Toronto municipal), legal fees, home inspection, appraisal, title insurance, and adjustments. Lez Gomez ensures clients in Whitby, Ajax, Pickering, Oshawa, and across the GTA understand every cost before committing.
Key Takeaways:
- Ontario Land Transfer Tax: 0.5%-2.5% on tiered brackets
- Toronto buyers pay an additional municipal LTT
- First-time buyer LTT rebates up to $4,000 provincial
- Budget $1,500-$2,500 for legal fees
Mortgage Rates & Terms
Mortgage rates in Ontario vary by lender, term length, and your financial profile. Lez Gomez shops rates across 50+ lenders to find the lowest rate for your situation. Terms range from 1 to 10 years, with 5-year fixed being the most popular in Canada. Rate holds protect you from increases during your home search.
Key Takeaways:
- Compare rates from banks, credit unions, and monoline lenders
- Shorter terms often have lower rates
- Rate holds typically last 90-120 days
- Lez Gomez negotiates on your behalf
The Home Buying Process
From pre-approval to getting your keys, the Ontario home buying process typically takes 30-90 days. Lez Gomez guides you through every step: pre-approval, house hunting, making an offer, home inspection, appraisal, mortgage commitment, lawyer review, and closing. Clients from Kitchener to Kingston trust Lez for a smooth, stress-free experience.
Key Takeaways:
- Work with a licensed real estate agent
- Always include inspection and financing conditions
- Closing day: your lawyer handles fund transfers
- Lez Gomez is available 7 days a week
Pro Tips from Lez Gomez
Improve Your Credit Score
Pay bills on time, keep credit utilization below 30%, and avoid new credit applications before your mortgage. Lez Gomez can advise on credit improvement strategies.
Save for a Larger Down Payment
A 20%+ down payment eliminates CMHC insurance, saving you thousands. Use RRSP HBP, FHSA, and TFSAs to build your fund.
Avoid Common Mistakes
Do not change jobs, make large purchases, or co-sign loans during the approval process. Lez Gomez walks you through the pitfalls.
Have More Questions?
Lez Gomez offers free consultations for Ontario home buyers and homeowners. Get personalized advice for your situation.