Choose the Right Structure
Mortgage Options
The right mortgage depends on your down payment, your risk tolerance, and how long you plan to stay. Here is what each option means — and who it fits.
Fixed-Rate Mortgage
Your interest rate is locked for the term (typically 3 or 5 years). Payments never change, no matter what the Bank of Canada does.
Who it fits: Buyers who value certainty — first-time buyers, tight budgets, or anyone who loses sleep over rate announcements.
Variable-Rate Mortgage
Your rate floats with your lender’s prime rate. Historically variable has cost less than fixed over full terms, but payments (or the interest portion) move when prime moves.
Who it fits: Buyers with room in their budget who can absorb payment swings, or who expect rates to fall during their term.
Open vs Closed
An open mortgage can be paid off at any time without penalty but carries a higher rate. A closed mortgage has a lower rate with limited prepayment privileges (typically 10–20% per year).
Who it fits: Open suits sellers planning to move or expecting a windfall soon. Closed suits nearly everyone else — the rate discount is significant.
Insured (High-Ratio) Mortgage
With less than 20% down, mortgage default insurance (CMHC, Sagen, or Canada Guaranty) is mandatory. The premium — up to 4% of the loan — is added to your mortgage. Insured mortgages are only available on homes under $1.5M, with a maximum 25-year amortization for most buyers.
Who it fits: Buyers with 5–19.99% down. Note: much of Toronto’s freehold market exceeds the insured price cap, requiring 20% down.
Conventional Mortgage
With 20% or more down, no insurance is required, amortizations up to 30 years are available, and there is no price cap.
Who it fits: Buyers with larger down payments — and any purchase over $1.5M, where 20% down is mandatory.
Pre-Approval
A lender verifies your income and credit and commits to a rate for 90–120 days. It tells you your real budget and protects you if rates rise while you shop.
Who it fits: Every serious buyer, before the first showing. Sellers take offers from pre-approved buyers more seriously.
Run the Numbers
Payment Calculator
Monthly payment from price, down payment, rate, and amortization.
Refinance Calculator
Compare your current mortgage against a new rate.
Land Transfer Tax Calculator
Ontario + Toronto municipal tax, with first-time buyer rebates.
Affordability Calculator
What price range you qualify for, from income and debts.
Find Your Dream Home
Connect with a local expert who knows the market inside and out.