Question 1

How much do I need for a down payment?

Accepted Answer

The minimum down payment depends on the purchase price, current mortgage rules, lender requirements, and your financial profile. Many buyers begin with a minimum of 5%, but the total amount required can be higher depending on the property and purchase price.

Question 2

Can I buy my first home with 5% down?

Accepted Answer

Possibly. Buyers who meet lender and insurer requirements may be able to purchase with less than 20% down. Mortgage default insurance will generally apply when the down payment is below 20%.

Question 3

What is the difference between pre-qualified and pre-approved?

Accepted Answer

A pre-qualification is often a rough estimate based on limited information. A pre-approval is a more detailed review of your income, credit, debts, and down payment. A strong pre-approval gives you a more reliable starting point before making offers.

Question 4

Can I use my FHSA and RRSP Home Buyers’ Plan together?

Accepted Answer

Eligible buyers may be able to use both programs, subject to each program’s rules, timing requirements, and available contribution room. It is important to plan this properly before submitting an offer.

Question 5

Can my parents give me money for a down payment?

Accepted Answer

In many cases, yes. Lenders may accept gifted down payments from immediate family members, but the gift must usually be documented and supported by bank records.

Question 6

Can my parents co-sign my mortgage?

Accepted Answer

Potentially. A co-signer may strengthen an application by adding income or credit strength, but they also take on legal responsibility for the mortgage. This should be considered carefully by everyone involved.

Question 7

How much should I budget for closing costs?

Accepted Answer

Closing costs depend on the property, purchase price, municipality, lender, and legal requirements. You should set aside money beyond the down payment so you are not financially stretched immediately after closing.

Question 8

Can I get a mortgage if I am new to Canada?

Accepted Answer

Possibly. Some lenders offer newcomer programs, but eligibility depends on your residency status, income, down payment, credit profile, employment, and property details.

Question 9

Should I get pre-approved before seeing homes?

Accepted Answer

Yes. A proper pre-approval helps you understand your price range, payment, down payment, and documents before you become emotionally attached to a property.

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