The minimum down payment can be as low as 5% to purchase a home.  However, you must be able to confirm that you can cover closing costs to close your mortgage. Some of these fees will include: legal fees, appraisal fee, land transfer tax, and title insurance.

Registered Retirement Savings Plans (RRSPs may be used as a down payment up to a maximum amount of $30,000 and are not subject to income tax if repaid within a specific time period) gift from immediate family, accumulated savings, sale of existing home.

When you are buying a home you will want to know two things: whether you are paying the right price and whether the condition of the home is as promised. To determine the value of the home you may need a professional appraisal. If you are taking out a mortgage loan the lender usually requires a professional third party appraisal of the home to determine the lending value.

Canada Mortgage and Housing Corporation is a federally owned and operated institution that evaluates the client and property to allow the borrower to purchase a home with a lower down payment requirement. This corporation insures the mortgage on behalf of the bank, through a premium added to your mortgage. This way the banks are obligated to provide a mortgage for those with less than a 20% down payment.

Distinct from mortgage life insurance or home, property, fire, and casualty insurance, mortgage insurance provides protection to the lender in the event of a default.   Accordingly, and as required by law, mortgage insurance must be purchased for the full amount of the mortgage

When a lender offers you a mortgage, you have to repay both the original loan amount and interest through monthly payments. The interest is the biggest cost that you have to incur on a mortgage. A good deal on a mortgage is one that offers you a lower interest rate and easy repayment terms.

You can compare the rates and other terms offered by different lenders to get an idea of what the loan will cost you. In doing so, you will find that most lenders offer pretty much the same basic terms. This is because they are all regulated to a certain extent by the government. However, there could be significant differences in several other charges like closing cost, prepayment fee, appraisal cost, legal fee etc.

Hiring a mortgage broker is a good option if you are unfamiliar with the process involved in taking a mortgage and don’t want to spend a lot of time in understanding the nuances of this industry. The broker can advise you on how to go about getting the loan and he’ll give you a fair estimate of the charges that will be added by the lender. He can also point out any pitfalls in the fine print that you need to be wary of, which you wouldn’t find in any FAQ section.

An experienced mortgage broker can help you find the right lender for your needs quickly, and with minimum effort from your side. As he would already know many of the lenders, he will be able to negotiate a lower mortgage rate and easier terms.

A fixed rate means your mortgage will always have a pre-determined interest rate irrespective of the changes in the economic conditions. On the other hand, an adjustable rate can be changed by the lender whenever he feels that the economic conditions have changed.

If you are looking for stable monthly payments and do not want to be dealing with the uncertainty, it is advisable to go for a fixed rate mortgage. But if you have sufficient financial cushion to absorb any increase in your monthly payments, and if you feel that interest rates are likely to go lower in the near future, then an adjustable rate mortgage might be a better option for you.