Question 1

What is the difference between a fixed and variable rate mortgage?

Accepted Answer

A fixed rate locks your interest rate for the entire mortgage term — your payment never changes, regardless of what the Bank of Canada does. A variable rate moves with the lender's prime rate, which tracks BoC decisions. Variable rates often start lower and drop when BoC cuts, but your payment changes with each rate decision. Over 60% of Canadians choose 5-year fixed for the payment certainty.

Question 2

What is a mortgage term vs. amortization?

Accepted Answer

Your amortization is the total time to pay off your mortgage in full (e.g., 25 years). Your term is the length of your current contract — typically 1 to 5 years. At the end of each term you renew at the current rate. A 25-year amortization usually involves 5 renewals if you always choose 5-year terms.

Question 3

How often does the Bank of Canada change rates?

Accepted Answer

The Bank of Canada announces its policy rate 8 times per year, roughly every 6–7 weeks. Each announcement can result in a rate hold, increase, or cut. Variable rate mortgage holders see their effective rate change immediately after each BoC decision. Fixed rate holders are unaffected until their term ends and they renew.

Question 4

What is a rate hold and how long does it last?

Accepted Answer

A rate hold is a lender's guarantee to lock a quoted rate for a set period — typically 90 to 120 days — while you complete your purchase. If rates rise before your closing date, you keep the lower rate. If rates fall, many lenders allow you to take the lower rate instead. Getting a rate hold early is one of the smartest moves you can make.

Question 5

Can I get a mortgage with a variable rate and switch to fixed later?

Accepted Answer

Yes — most variable rate mortgages in Canada allow you to convert to a fixed rate at any time during your term, typically penalty-free. The fixed rate offered at conversion is based on the lender's current rates for the remaining term. This gives you flexibility to start variable (often lower) and lock in if you see rates rising.

Question 6

How much do I need for a down payment in Canada?

Accepted Answer

The minimum is 5% for homes under $500,000. For the $500K–$1M portion, 10% is required. Homes over $1M require at least 20% down — they are not eligible for CMHC insurance. With less than 20% down, you must pay CMHC mortgage insurance (2.8%–4% of the loan added to your balance).

Question 7

What is CMHC insurance and do I have to pay it?

Accepted Answer

CMHC (Canada Mortgage and Housing Corporation) mortgage insurance is required when your down payment is less than 20%. The premium ranges from 2.8% to 4% of the mortgage amount and is added directly to your mortgage balance — not paid upfront. It protects the lender (not you) if you default. It does allow you to buy with less than 20% down and typically comes with slightly better rates.

Question 8

How long does it take to get a mortgage in Canada?

Accepted Answer

Pre-approval typically takes 24–48 hours. From full application submission to mortgage commitment is usually 3–7 business days with a standard lender. Closing (from accepted offer to key day) averages 21 days at Greenhouse Mortgage — faster than the industry standard of 30–45 days.

Question 9

What is a mortgage pre-approval and why do I need one?

Accepted Answer

A pre-approval is a lender's conditional commitment to lend you up to a specific amount at a specified rate. It tells sellers you're a serious buyer, locks your rate for up to 120 days, and identifies any issues before you start shopping. Sellers and realtors strongly prefer pre-approved buyers — in competitive markets it can make or break an offer.

Question 10

Can I buy a home in Canada if I am self-employed?

Accepted Answer

Absolutely. Self-employed buyers typically need 2 years of Notices of Assessment (NOAs) from the CRA to qualify at A-lenders. We also work with B-lenders and stated-income programs for borrowers with less traditional income documentation. Many incorporated business owners qualify for more than they expect because we structure the file to include their full earning picture.

Question 11

What closing costs should I budget for in Ontario?

Accepted Answer

Budget 1.5–4% of the purchase price in closing costs. Key items: Ontario Land Transfer Tax (provincial, with up to $4,000 rebate for first-time buyers), Toronto Municipal LTT (if buying in Toronto), legal fees ($1,500–$2,500), title insurance ($200–$400), home inspection ($400–$600), and moving costs. Your advisor will give you an accurate closing cost estimate for your specific situation.

Question 12

When does it make sense to refinance my mortgage?

Accepted Answer

Refinancing makes sense when: (1) You can access a rate low enough that savings exceed the prepayment penalty, (2) You need to consolidate high-interest debt into the mortgage, (3) You want to access equity for renovations or investments, or (4) Your financial situation has significantly changed. Use our Penalty Estimator to see your break-even point — if you recover the penalty cost within 24 months, refinancing usually makes sense.

Question 13

How much equity can I access when I refinance?

Accepted Answer

In Canada, you can refinance up to 80% of your home's current appraised value (the LTV limit). For example: if your home is worth $800,000 and your mortgage balance is $400,000, you can access up to $240,000 in equity (80% × $800K = $640K − $400K balance). Accessing equity beyond 80% requires a HELOC or second mortgage, both at higher rates.

Question 14

What is the prepayment penalty for breaking a fixed mortgage?

Accepted Answer

Breaking a fixed-rate closed mortgage triggers a penalty of the greater of: (1) 3 months' interest, or (2) the Interest Rate Differential (IRD). The IRD can be much larger — on a $500K mortgage mid-term, it can range from $5,000 to $25,000+. Variable rate penalties are almost always just 3 months' interest, which is significantly lower. We always calculate your exact penalty before recommending a break.

Question 15

How long does a refinance take in Canada?

Accepted Answer

A typical refinance takes 4–8 weeks from application to funding. The process involves: broker application (1–2 days), lender approval (3–7 days), appraisal (1–3 days), and legal closing (1–2 hours with your lawyer). If you are in a rush, some lenders can fast-track to 3 weeks — ask your Greenhouse advisor.

Question 16

When should I start shopping for my mortgage renewal?

Accepted Answer

Start 120 days before your renewal date — that's 4 months early. Most lenders allow a 120-day rate hold, so you can lock a great rate now and if rates drop further before your renewal, many lenders will honour the lower rate. Waiting until you get your lender's auto-renewal letter (typically 30 days before maturity) means you've lost significant negotiating power.

Question 17

Can I switch lenders at renewal without paying a penalty?

Accepted Answer

Yes — switching lenders at renewal is completely penalty-free. You are not breaking your mortgage; your term has simply ended. Many lenders also cover the legal fees and appraisal costs of switching as an incentive. This is the single best time to compare all lenders with zero downside cost.

Question 18

Should I accept my bank's auto-renewal offer?

Accepted Answer

Almost never without comparing first. Banks typically send auto-renewal offers at their posted rate, which is often 0.4–0.8% higher than what's available in the market. On a $500K mortgage, that difference costs $2,000–$4,000 per year. Your current lender's first offer is rarely their best — always counter with a competing broker quote.

Question 19

What is the difference between renewal and refinancing?

Accepted Answer

Renewal means your current term has ended and you are simply negotiating a new rate and term — you are not changing your mortgage balance, amortization, or lender (unless you switch). Refinancing means you are changing the mortgage itself mid-term — breaking the existing mortgage to access equity, lower your rate, or change terms — which typically triggers a prepayment penalty.

Question 20

What is the First Home Savings Account (FHSA)?

Accepted Answer

The FHSA is a registered account introduced in 2023 that lets first-time buyers save up to $8,000/year ($40,000 lifetime) completely tax-free. Contributions are tax-deductible (like an RRSP), and qualifying withdrawals for a home purchase are tax-free (like a TFSA). It's one of the most powerful savings tools ever introduced for Canadian first-time buyers.

Question 21

Can I use my FHSA and RRSP (Home Buyers' Plan) together?

Accepted Answer

Yes — you can combine both programs in the same year. That's up to $40,000 from your FHSA (tax-free) plus up to $35,000 per person from your RRSP via the Home Buyers' Plan, for a total of $75,000 per person in tax-advantaged funds. A couple could combine $150,000 toward their down payment. Our advisors will walk you through the sequencing to maximize both.

Question 22

What is the Ontario Land Transfer Tax rebate for first-time buyers?

Accepted Answer

Ontario first-time buyers receive a rebate of up to $4,000 on the provincial Land Transfer Tax. If you are buying in Toronto, you also receive a municipal rebate of up to $4,475 — a combined potential saving of up to $8,475. The rebate is automatically applied at closing through your lawyer.

Question 23

What is the First-Time Home Buyers' Tax Credit?

Accepted Answer

The federal First-Time Home Buyers' Tax Credit allows you to claim a $10,000 non-refundable tax credit on your T1 return in the year you purchase your first qualifying home. The credit is worth up to $1,500 in actual tax savings. Both partners in a couple can claim it if they are both first-time buyers.

Question 24

What is the mortgage stress test in Canada?

Accepted Answer

The stress test requires all federally regulated mortgage applicants to prove they can afford payments at the higher of: their contract rate + 2%, or the Bank of Canada benchmark rate (currently 5.25%). This ensures borrowers can handle rate increases at renewal. It affects how much you can borrow — not the rate you actually pay.

Question 25

What credit score do I need to get a mortgage in Canada?

Accepted Answer

Most A-lenders (big banks and monolines) require a minimum Beacon score of 620 for conventional mortgages and 600 for CMHC-insured mortgages. A score of 680+ gets you access to the best rates. Scores between 550–620 can still qualify with B-lenders at slightly higher rates. We work with all credit tiers and will find the best available option for your score.

Question 26

What is the GDS and TDS ratio for mortgage qualification?

Accepted Answer

GDS (Gross Debt Service) ratio: your housing costs (mortgage, taxes, heat, 50% of condo fees) cannot exceed 39% of your gross monthly income. TDS (Total Debt Service) ratio: all monthly debt payments (housing + car + credit cards + student loans) cannot exceed 44% of your gross monthly income. Both are hard limits — exceeding either disqualifies the application at most A-lenders.

Question 27

Can I qualify for a mortgage with a consumer proposal or past bankruptcy?

Accepted Answer

Yes — though timing and conditions matter. After a consumer proposal is fully paid and discharged, most B-lenders require 2 years of re-established credit. After bankruptcy discharge, A-lenders typically require 2 years of clean credit history; B-lenders can sometimes approve sooner. Private lending options are also available as a bridge. We work with all stages of credit recovery.

Question 28

Is using a mortgage broker free?

Accepted Answer

Yes — our service is completely free to you. The lender pays our fee (called a finder's fee or brokerage commission) when your mortgage closes. We are legally required to disclose any scenario where a fee would be charged to you (which is rare and only occurs in very specific private lending situations). You get access to 30+ lenders at zero cost.

Question 29

What is a collateral charge and why does it matter?

Accepted Answer

A collateral charge registers your mortgage at a higher amount than you borrow (sometimes up to 125% of property value). This allows future borrowing without new legal work — but it means switching lenders at renewal costs $800–$2,000 in discharge and new registration fees, instead of being free. TD and Scotiabank typically register collateral charges. Monolines and some other lenders use standard charges, which transfer for free.

Question 30

What does a refinance cost all-in?

Accepted Answer

The main cost is the prepayment penalty (variable: ~3 months' interest; fixed: IRD, which can be significant). Budget an additional $1,500–$2,500 for legal fees and $300–$500 for an appraisal (though many lenders cover the appraisal). Some lenders also offer cash-back refinances that cover all closing costs. Your Greenhouse advisor calculates the total break-even before recommending a refinance.

Question 31

How many lenders does Greenhouse Mortgage work with?

Accepted Answer

We work with 30+ lenders — including Canada's major banks (TD, RBC, Scotiabank, BMO, CIBC), credit unions, and monolines (MCAP, First National, Merix, Nesto, and others). Monolines are wholesale lenders that only sell through brokers, so they're inaccessible if you go direct to a bank. Our volume relationships also unlock rate tiers unavailable to walk-in customers.

Question 32

How quickly will I hear back after submitting a contact request?

Accepted Answer

We respond within 2 business hours via your preferred contact method (phone, email, or video call). For urgent requests — such as an offer accepted with a short condition period — call us directly at (647) 775-0809 and we will prioritize your file immediately.

Question 33

Are Greenhouse Mortgage brokers licensed in Ontario?

Accepted Answer

Yes — all Greenhouse Mortgage advisors are licensed under the Financial Services Regulatory Authority of Ontario (FSRA), Licence #13468. FSRA is the provincial regulator for mortgage brokers in Ontario. You can verify our licence at any time on the FSRA public registry.

Question 34

Can Greenhouse Mortgage help me if I am not in Burlington?

Accepted Answer

Absolutely. We are licensed to serve clients across the entire province of Ontario and work with clients remotely by phone, email, and video call. We have helped buyers and homeowners in Toronto, Hamilton, Mississauga, Ottawa, Kitchener-Waterloo, London, Kingston, and throughout the province. Location is never a barrier.

Greenhouse Mortgage Services Inc. — Best Mortgage Rates Burlington & Ontario | FSRA Licensed Broker #13468

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Greenhouse Mortgage Services Inc. — Best Mortgage Rates Burlington & Ontario | FSRA Licensed Broker #13468

Every MortgageQuestion, Answered.

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Every Mortgage
Question, Answered.