1. Start with your down payment
In Canada the minimum down payment is 5% on the first $500,000 of the purchase price, 10% on any portion between $500,000 and $1.5 million, and 20% on homes priced at $1.5 million or more.
If you put down less than 20%, default mortgage insurance is required. The premium is calculated on your mortgage amount and is normally added to the mortgage rather than paid in cash.
2. Understand the stress test
Federally regulated lenders qualify you at the greater of your contract rate plus 2% or 5.25%. You make payments at your actual rate, but you're approved as though the rate were higher.
This is the single biggest reason buyers are surprised by their qualifying amount. The affordability calculator on this site applies the stress test so your estimate reflects it.
3. Budget for closing costs, not just the down payment
Closing costs typically land somewhere between 1.5% and 4% of the purchase price. In Toronto they run higher because both provincial and municipal land transfer tax apply.
Land transfer tax
Ontario charges it on every purchase; Toronto adds a municipal tax on top. First-time buyer rebates may reduce both.
Legal fees and disbursements
Your lawyer handles title, registration and the closing itself.
Title insurance and appraisal
Often required by the lender; sometimes the lender covers the appraisal.
Home inspection
Optional but usually worth it, especially on resale homes.
4. Get pre-approved before you shop
A pre-approval reviews your income, debts and down payment to indicate what you may qualify for, and often holds a rate for a set period. It is not final approval — the property itself and a complete application still have to be reviewed.
Practically, it does two things: it keeps you shopping in a realistic range, and it tells sellers you're prepared.
5. Choose your mortgage structure, not just the rate
Fixed or variable, term length, amortization, payment frequency and prepayment privileges all shape what the mortgage costs you over time and how much flexibility you have.
A slightly higher rate with better prepayment terms can cost less overall than the lowest advertised rate with restrictive conditions.
6. From accepted offer to keys
Once your offer is accepted, your lender finalizes approval, you provide the supporting documents, an appraisal may be ordered, and your lawyer prepares closing. Documents can be uploaded securely through the SAITHBAR client portal instead of email.