Financing
Before You Start Shopping...
Financing Your Home - What You Need To Know
Buying a home is one of the biggest decisions you’ll ever make, and understanding how financing works can make the whole process feel a lot less overwhelming. Here’s a simple breakdown of what to expect — and how to set yourself up for success.
Are You Qualified to Purchase a Property?
This is the first question to ask yourself — and the answer might surprise you. Several factors come into play: your income, your credit history, your current debts, your available down payment, and your employment stability. The good news is that there are often more options than you might think. Contact us and we’ll help you assess your situation — no judgment, no pressure.
Getting Pre-Approved
Before you start visiting properties, getting a mortgage pre-approval is one of the smartest moves you can make. A pre-approval tells you exactly how much a lender is willing to offer you, so you can shop with confidence and act quickly when you find the right home. It also shows sellers that you’re a serious buyer — which can make a real difference in a competitive market. We always recommend getting pre-approved before your first visit.
Fixed vs. Variable Rate — Which Is Right for You?
A fixed rate stays the same for the duration of your term, giving you predictable monthly payments and peace of mind. A variable rate fluctuates with the market, which can mean savings when rates drop — but less certainty overall. Most terms in Canada range from 1 to 5 years, with a 25-year amortization being the most common. A mortgage broker can help you figure out which option fits your situation best.
Down Payment Basics
In Canada, the minimum down payment is 5% for properties under $500,000. Between $500,000 and $999,999, it’s 5% on the first $500K and 10% on the remainder. For properties $1,000,000 and over, a minimum of 20% is required. Putting down 20% or more also means you avoid mortgage insurance — which brings us to the next point.
CMHC Mortgage Insurance
If your down payment is less than 20%, your mortgage must be insured through the Canada Mortgage and Housing Corporation (CMHC). This protects the lender — not you — in case of default. The insurance premium is added to your mortgage and typically ranges from 2.8% to 4% of the loan amount depending on your down payment. It’s an added cost, but it’s also what makes homeownership accessible with a smaller down payment.
Don't Forget Closing Costs
Beyond your down payment, plan to set aside an additional 2% to 4% of the purchase price to cover closing costs. In Quebec, this typically includes notary fees, the welcome tax (taxe de bienvenue), home inspection fees, and any adjustments at closing. These costs are easy to overlook, so it’s always better to budget for them early.
First-Time Buyer Programs
If this is your first home, there are some great programs that can help. The Home Buyers’ Plan (HBP) lets you withdraw up to $60,000 from your RRSP tax-free to use toward your purchase. The First Home Savings Account (FHSA) is a newer account that lets you save up to $40,000 tax-free specifically for buying your first home. Quebec also offers a land transfer tax rebate for first-time buyers. These programs can add up to significant savings — ask us and we’ll point you in the right direction.
Working With a Mortgage Broker
A mortgage broker works for you — not the bank. They have access to dozens of lenders and can shop around to find you the best rate and terms for your situation, often at no cost to you. We work with trusted mortgage professionals and are happy to refer you to someone we personally recommend.
Financing a Commercial Property
Whether you’re looking to purchase an office, a retail space, a multi-unit building, or an investment property, commercial financing works a little differently than residential — but the process doesn’t have to be intimidating.
Commercial loans typically require a higher down payment, usually between 25% and 35% of the purchase price, and lenders will look closely at both your personal finances and the income potential of the property itself. Terms and amortization periods can vary widely depending on the type of property and the lender.
Because commercial financing is more complex, working with a mortgage broker who specializes in commercial transactions is especially valuable. They can help you navigate the options, structure your financing strategically, and find lenders who understand your goals — whether you’re a first-time investor or expanding an existing portfolio.
A mortgage broker works for you — not the bank. They have access to dozens of lenders and can shop around to find you the best rate and terms for your situation, often at no cost to you. We work with trusted mortgage professionals and are happy to refer you to someone we personally recommend.
Have Questions About Your Financing?
Every situation is unique — and our job is to help you find the best options available, whether you’re taking your very first steps or you’re already an experienced property owner.
Take advantage of our daily network of contacts at banks, major financial institutions, mortgage brokers and private lenders. One free conversation can make all the difference.
📞 Call us today — no cost, no commitment.
Angelo Marguglio
Call me at 514-384-3400
Owner and Director, Chartered Real Estate Broker
Residential & Commercial Certified - Permit C2051
Palma Marguglio
Call me at 514-880-4475
Real Estate Broker
Residential & Commercial, Real Property Adm - Permit A5666
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