MORTGAGES EXPLAINED

Mortgage questions.
Simple answers.

Learn what the common terms mean, which costs to plan for, and what to ask before choosing a mortgage.

Estimate your costs Read common questions

For Canadian mortgage planning · Sources checked September 27, 2026

START WHERE YOU ARE

Choose what you want to learn.

Getting pre-approved

Find out what you may be able to borrow.

A pre-approval estimates how much a lender may lend you. The lender checks your finances. Final approval still depends on the home you choose and the lender’s other requirements.

Have a rough idea of your income, debts, and savings for the purchase.
Ask what the lender has checked and what is still needed. If a rate is held for you, ask when that hold ends.
Choose a payment you can comfortably manage. You do not need to borrow the maximum.

FCAC: Getting preapproved

Learn more about getting pre-approved

Planning a purchase

Budget for more than your down payment.

Your down payment is the money you put toward the home yourself. You also need money to complete the purchase and pay the bills after you move in.

Set money aside for legal fees, any land transfer tax, a home inspection, and moving.
Include property tax, home insurance, utilities, maintenance, and any condo fees.
Keep some savings for unexpected bills or repairs.

Ask your lawyer and me to help you estimate the costs for the home you plan to buy.

FCAC: Buying a home

Learn more about planning a purchase

Approaching renewal

Review your offer before you renew.

A mortgage term is the length of your current agreement. Start comparing renewal options a few months before it ends.

Have your renewal date, the amount you still owe, and any renewal offer ready.
Compare the rate, payment, and rules for paying extra or ending the agreement early.
Ask whether a new lender will approve you and what it will cost to switch.

Taking longer to repay the mortgage can lower your payment but increase the interest you pay overall.

FCAC: Renewing your mortgage

Learn more about approaching renewal

Considering refinancing

Check the costs before borrowing more.

Equity is your home’s value minus the loans tied to it. Having equity does not automatically mean a lender will let you borrow more.

Be clear about why you want to change your mortgage or borrow more.
Review what you already owe and what the lender needs to approve a change.
Add up property valuation costs, legal fees, and any charge for ending your mortgage early.

This borrowing is tied to your home. If you cannot repay it, you could lose your home.

FCAC: Borrowing against home equity

Learn more about considering refinancing

COMMON QUESTIONS

Your questions,
answered.

Tap a question to read the answer. For help with your own plans, ask me.

Do I pay for a consultation or mortgage application?

I don’t charge for consultations or mortgage applications. You may still have other costs, such as lender or brokerage fees, legal fees, or a property valuation. I’ll explain any applicable charges before you proceed.

Does pre-approval guarantee financing?

No. The lender still needs to approve the property and confirm your finances. Ask what remains to be approved before you commit to buying.

FCAC: Getting preapproved

What is the difference between a term and amortization?

The term is how long your current mortgage agreement lasts, such as 5 years. Amortization is the estimated time to repay the whole mortgage, such as 25 years. You usually renew several times before it is paid off.

FCAC: Terms and amortization

How are fixed and variable rates different?

A fixed interest rate stays the same during your mortgage term. A variable rate can go up or down. Depending on your agreement, that may change your payment or how much of it goes toward paying off the loan.

FCAC: Interest on mortgages

Does mortgage default insurance protect me?

No. Mortgage default insurance protects the lender if you do not repay. It is usually required for an eligible home purchase with less than 20% down. It is different from insurance for your home or your life.

FCAC: Down payments

Do I have to renew with my current lender?

You may be able to switch if the new lender approves you. Compare the rate, fees, and mortgage rules before deciding.

FCAC: Renewing your mortgage

Can I pay extra without a penalty?

Your agreement says how much extra you can pay without a fee. Paying more than that limit, or ending some mortgages early, can trigger a penalty. Ask your lender for the limit and a written estimate of any penalty first.

FCAC: Prepayment penalties

Is the lowest rate always the best choice?

A low rate can help, but fees and restrictions matter too. If you may sell, change your mortgage, or make extra payments, check what those changes would cost.

FCAC: Prepayment penalties

Does refinancing automatically save money?

No. Add up the fees, penalties, and interest over the time you will take to repay. A smaller monthly payment can still cost more overall. Borrowing more against your home also increases the debt tied to it.

FCAC: Borrowing against home equity

What should I have ready for the first call?

Tell me what you want to do, when you hope to do it, and your main questions. A rough budget or the amount you owe is helpful. You do not need every document ready for the first call.

Should I send financial documents through this website?

No. Send only a short message through the contact form. Leave out your Social Insurance Number (SIN), bank details, ID, passwords, and financial documents. I’ll explain how to share documents safely if they are needed.

BEFORE WE TALK

What to have ready
when we talk.

You do not need to have everything ready. A few notes about your plans and questions are enough to start.

Request a free call

Your goalBuying, renewing, refinancing, or figuring out where to start.
Your timelineWhen you hope to buy or move, when your mortgage renews, or any date you need financing approved by.
Your rough budgetWhat you hope to spend, your savings, income, and debts—or how much you owe on your current mortgage.
What matters to youThe payment you can manage, any plans to move or pay extra, and the questions you want answered.

KEEP LEARNING

Mortgage questions.Simple answers.