On a conventional mortgage you can borrow up to 80% of the purchase price or the appraised value, whichever is lowest.

On a High Ratio Mortgage, under $500,000 purchase price you can borrow up to 95% of the purchase price or the appraised value, whichever is lowest.

Between $500,000 and $999,000 the downpayment is 5% on the first $500,000 and 10% up to $999,000.

As an example, a home purchased for $650,000 the downpayment is $40,000. 5% of $500,000 = $25,000 plus 10% of $150,000 = $15,000 for a total of $40,000.

There are three criteria lenders look at when approving your application:

• Income
• Credit score and credit history
• Down payment
• The home being purchased

If you're unsure where you stand in any of these categories, it's good to get a pre-approval from a lender before starting the application process. Pre-approval has the added benefit of being able to lock in your mortgage rate and be immune to potential rises in mortgage rates over the lock (hold) period. That way, you can
identify and fix any issues that may be holding you back.

There are three types of Mortgage Insurance:

1. House Insurance or Fire Insurance – This is insurance on your home and
   personal belongings. This protects your home against such risks as fire, theft,
   weather, flooding, etc. Yes, this is mandatory.
2. Title Insurance: Insurance against loss or damage arising from a matter
   affecting the title to real property (e.g.: by a defect in the title) Yes, this is
   mandatory.
3. Mortgage Default Insurance: Insurance that protects your lender against default.

If your mortgage is for more than 80% of the lending value of the property, your lender will probably require mortgage loan insurance from CMHC or Sagen or Canada Guarantee.

Yes, this insurance is mandatory if your downpayment is less than 20%.

It usually takes between 2 to 4 weeks from start to finish if there are no abnormalities and the lawyers are prepared to close in this time frame.

When you pay off a mortgage it is discharged; however, you have to ask your lender to release their charge on the title of your home. This is when a mortgage is discharged.

Yes, you can break a mortgage. You would be required to pay a penalty of three months interest.

A Bank only represents themselves and can only speak on behalf of their single institution.
A Broker or Mortgage Agent can represent many different lenders

Yes, you can. There are lenders that specialize in dealing with people who are self-employed whether they are a Sole Proprietor, a corporation or a Partnership.

For an insured or high-ratio mortgage, the maximum length is 25 years.
For a conventional mortgage or refinance, amortization can go to 30 years and, in some cases, 35 years.