Qualifying, fixed or variable, penalties, renewals, refinancing and HELOCs — plain answers on the mortgage questions Ontario buyers and owners ask, using the federal rules in force in 2026.
Qualifying
How much mortgage can I afford in Ontario?
Lenders cap your housing costs — mortgage payment, property tax, heat and half of any condo fee — at about 39% of gross income, and all debt payments at about 44%, calculated at the stress-test rate rather than your actual rate. Your down payment then sets the price ceiling. An affordability calculator that applies those rules gives a realistic number in a minute.
Full guide: How much home can you afford in the GTA?Try it: GTA affordability calculator
Last reviewed October 2026 · Jatin Dua, Broker of Record
What credit score do I need for a mortgage in Canada?
For an insured mortgage, CMHC requires at least one borrower to have a score of 600 or higher; most major lenders look for scores in the mid-600s or above for their best rates. Lower scores can still borrow through alternative lenders, usually at higher rates.
Full guide: Credit score for a mortgage in Canada
Last reviewed October 2026 · Jatin Dua, Broker of Record
Can I get a mortgage if I’m self-employed?
Yes. Most lenders want two years of self-employment history and your Notices of Assessment, and they average your declared income; if you write off a lot, your qualifying income may be lower than you expect. Stated-income and alternative-lender programs exist for strong down payments.
Full guide: Getting a mortgage when self-employed
Last reviewed October 2026 · Jatin Dua, Broker of Record
Can I get a mortgage as a newcomer to Canada?
Yes. Lenders and the mortgage insurers run newcomer programs that accept limited Canadian credit history, often with a larger down payment or foreign credit references. Check first whether the federal ban on non-Canadian buyers, in place until 1 January 2027, applies to you; permanent residents are not covered by it.
Full guide: Buying with no Canadian credit history
Last reviewed October 2026 · Jatin Dua, Broker of Record
What is the maximum amortization for a mortgage in Canada?
Insured mortgages are limited to 25 years, except that first-time buyers and buyers of newly built homes can take 30 years since 15 December 2024. Uninsured mortgages (20% or more down) are typically available up to 30 years.
Full guide: First-time buyer checklistTry it: Mortgage calculator
Last reviewed October 2026 · Jatin Dua, Broker of Record
Choosing a mortgage
Should I choose a fixed or variable mortgage in 2026?
A fixed rate gives a payment that cannot change for the term; a variable rate moves with your lender’s prime rate and usually has a much smaller penalty if you break it. Choose on how much payment risk you can carry and how likely you are to sell or refinance before the term ends, not on a rate forecast.
Full guide: Fixed or variable in 2026Try it: Mortgage calculator
Last reviewed October 2026 · Jatin Dua, Broker of Record
What is the penalty for breaking a mortgage in Canada?
On a variable-rate mortgage it is usually three months’ interest. On a fixed-rate mortgage it is usually the greater of three months’ interest or the interest rate differential (IRD), which can be many times larger — especially with a big bank whose IRD uses posted rates. Ask your lender for a written payout quote before you list.
Full guide: Prepayment penalties and the IRD
Last reviewed October 2026 · Jatin Dua, Broker of Record
Can I take my mortgage with me when I move?
Often, if your mortgage is portable: you can move the existing rate and balance to a new home, usually within a set window, and blend any extra borrowing at today’s rate. Porting avoids the prepayment penalty, but you must requalify for the new property.
Full guide: Porting a mortgage
Last reviewed October 2026 · Jatin Dua, Broker of Record
What is the difference between a collateral and a standard charge mortgage?
A standard charge is registered for the amount you borrow; a collateral charge is registered for a higher amount, often up to the home’s value, so you can borrow more later without re-registering. Collateral charges are harder to switch to another lender at renewal, because the new lender usually has to pay to register a fresh mortgage.
Full guide: Mortgage broker vs bank
Last reviewed October 2026 · Jatin Dua, Broker of Record
Who are CMHC, Sagen and Canada Guaranty?
They are Canada’s three mortgage default insurers. If your down payment is under 20%, one of them insures the lender against default, and you pay the premium, which is added to the mortgage. Their premium tables are similar; your lender chooses which insurer to use.
Full guide: Minimum down payment and insurance
Last reviewed October 2026 · Jatin Dua, Broker of Record
Renewal, refinancing and borrowing against your home
When does my lender have to send my mortgage renewal?
A federally regulated lender must send a renewal statement at least 21 days before your term ends. Start shopping well before that — many lenders will hold a rate for 120 days — because you can switch lenders at maturity without a penalty.
Full guide: Mortgage renewal in 2026
Last reviewed October 2026 · Jatin Dua, Broker of Record
What if my payment jumps at renewal?
Many borrowers renewing in 2026 face higher payments than their original low-rate terms. Options include extending the amortization where allowed, choosing a different term, making a lump-sum payment, or switching lenders; talk to your lender or a broker early rather than waiting for the renewal letter.
Full guide: When renewal is hard: your options
Last reviewed October 2026 · Jatin Dua, Broker of Record
How much can I refinance my home for in Canada?
Up to 80% of the home’s appraised value, less what you already owe, and you must qualify at the stress-test rate. Refinancing in the middle of a term usually triggers a prepayment penalty, so compare it with a HELOC or second mortgage.
Full guide: HELOC vs refinance
Last reviewed October 2026 · Jatin Dua, Broker of Record
How much can I borrow with a HELOC?
A home equity line of credit can be up to 65% of your home’s value on its own, and the combined total of your mortgage and HELOC can be up to 80%. You pay interest only on what you draw, at a variable rate.
Full guide: HELOC vs refinance
Last reviewed October 2026 · Jatin Dua, Broker of Record
What is a reverse mortgage and who can get one?
A reverse mortgage lets homeowners aged 55 and over borrow against their home without making payments; the loan and interest are repaid when the home is sold or the last borrower dies or moves out. Interest compounds, so the amount owed grows quickly.
Full guide: Reverse mortgages: pros and cons
Last reviewed October 2026 · Jatin Dua, Broker of Record
What is bridge financing?
Bridge financing is a short-term loan that lets you use the equity in the home you are selling to close on your new home before your sale closes. Lenders usually want a firm sale on your current home and limit the bridge to a few months.
Full guide: Bridge financing explained
Last reviewed October 2026 · Jatin Dua, Broker of Record
What happens if I can’t pay my mortgage in Ontario?
Call your lender as early as possible: options include payment deferral, amortization extension or a temporary plan. If arrears continue, Ontario lenders usually use power of sale rather than foreclosure, selling the home to recover what is owed after giving the notices the Mortgages Act requires.
Full guide: Power of sale in Ontario
Last reviewed October 2026 · Jatin Dua, Broker of Record
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Jatin Dua · Broker of Record · RE/MAX Quantum Realty · Toronto and the GTA