What is a pre-qualification?
A quick estimate of your maximum purchase price based on general, unverified information you give a lender or online calculator. It's a helpful ballpark — not a commitment.
What is a pre-approval?
A closer look: a mortgage professional reviews your application, income and down-payment documents, and your credit, then gives you a more accurate maximum you can shop with confidence.
What is an approval?
Once you have an accepted offer on a home, I submit your file to a lender. When they review and confirm everything, they issue a full approval on that specific property.
How much do I need for a down payment?
For an owner-occupied home you may put as little as 5% down — but you still have to qualify for the full mortgage based on your income and debts. The tiers: 5% on the first $500,000, 10% on the portion from $500,000 to $1.5 million, and 20% above $1.5 million. Rental properties require at least 20% down.
What if I don't qualify for the home I want?
There are usually options — adding a co-signer, increasing your down payment, or paying down debt. And because I work with many lenders, a "no" from one isn't a "no" everywhere; I can shop your file to others.
What is a co-signer?
Someone added to your application when you don't qualify on your own. Their income and debts join yours to strengthen the file. They go on title and the mortgage, and it appears on their credit — so it can affect their own borrowing down the road.
What is a guarantor?
Someone who backs your mortgage when your credit or history is thin, or your application is slightly weaker than a lender wants. In most cases the mortgage doesn't appear on their credit, though this varies by lender.
What is default insurance?
Often called CMHC insurance, though three providers offer it — CMHC, Sagen, and Canada Guaranty. It's required with less than 20% down, gets added to your mortgage, and protects the lender if payments stop. It's an added cost, but it's also what makes buying with a smaller down payment possible.
