Purchase Mortgages in Canada. Know Your Costs Before You Buy.

A purchase mortgage is financing used to buy real estate. The buyer contributes an eligible down payment and finances the remaining approved amount through a loan secured against the property.

For eligible homes priced at $500,000 or less, the minimum is 5%. For homes over $500,000 but below $1.5 million, it is 5% of the first $500,000 plus 10% of the remaining amount. Homes priced at $1.5 million or more generally require at least 20% down.

Usually, yes, on an eligible purchase mortgage. Mortgage default insurance protects the lender, not the buyer. The premium depends on the mortgage structure, down payment and insurer requirements.

Eligible first-time homebuyers may qualify for a 30-year insured amortization under current Canadian rules. Buyers of newly built homes may also qualify, even when they are not first-time buyers, subject to lender and mortgage-insurer criteria.

For a standard insured purchase of an existing home, the usual maximum amortization is 25 years unless another applicable program allows otherwise. Uninsured mortgage options may have different amortization limits subject to lender requirements.

No. Pre-approval may estimate borrowing capacity, but final approval depends on the property, current financial information, documents, appraisal and lender conditions.

A general planning range of 1.5%–4% of the purchase price can be useful, but actual costs may fall outside that range. Property transfer tax, legal or notarial fees, inspections, appraisal, mortgage insurance premium tax and other costs depend on the location and transaction.

Where applicable, lenders assess qualification using a rate higher than the contractual mortgage rate. Many federally regulated uninsured mortgage applications use the greater of the contract rate plus two percentage points or 5.25%, while insured mortgage rules also impose qualifying-rate requirements.

Gross Debt Service (GDS) measures applicable housing expenses against gross income. Total Debt Service (TDS) includes eligible housing costs plus other qualifying debts. The limits and calculations depend on the lender and insurance program.

Yes. Eligible buyers may make a qualifying FHSA withdrawal and a Home Buyers' Plan withdrawal for the same home, provided they meet the requirements for both programs.

The current maximum HBP withdrawal is $60,000 per eligible individual from qualifying RRSP arrangements. The plan has eligibility and repayment rules.

Not automatically. Compare the lender's full terms, prepayment penalties, mortgage type, payment flexibility, fees and total borrowing cost.

Yes, subject to borrower and property eligibility. Condo fees, ownership structure, unit count, rental arrangements and lender policies can affect financing. Review the condo, townhouse and multi-unit mortgage guides.