Question 1

How much down payment do I need to buy a home in Ontario in 2026?

Accepted Answer

In Canada, the minimum down payment is 5% for homes priced up to $500,000, 10% on the portion between $500,001 and $999,999, and 20% for homes $1 million or above. CMHC mortgage insurance is required for any down payment under 20%. Ontario buyers also pay 8% PST on the CMHC premium at closing.

Question 2

How much mortgage can I afford on a $100,000 salary in Ontario?

Accepted Answer

As a rough guide, a $100,000 gross annual salary can support a mortgage of approximately $400,000–$500,000, depending on your debts, down payment, and property taxes. Lenders use a Gross Debt Service (GDS) ratio of 39% and Total Debt Service (TDS) ratio of 44%. A licensed broker can provide your exact pre-approval amount in a 15-minute call.

Question 3

What is CMHC mortgage insurance and how much does it cost in Canada?

Accepted Answer

CMHC insurance is mandatory for Canadian home purchases with a down payment under 20%. It protects the lender if you default. The premium is 2.8% of the mortgage for a 10–14.99% down payment, 3.1% for 10–14.99%, and 4.0% for 5–9.99% down. Ontario also charges 8% PST on the premium at closing. The premium is added to your mortgage balance — you don't pay it upfront.

Question 4

What is the mortgage stress test in Canada for 2026?

Accepted Answer

The Canadian mortgage stress test requires you to qualify at the higher of your contract rate + 2%, or the benchmark qualifying rate (currently 5.25%). This applies to all federally regulated lenders. Passing the stress test ensures you can still afford payments if rates rise. A licensed broker can help you structure your application to maximize the mortgage you qualify for.

Question 5

Can I use rental income to qualify for a larger mortgage in Ontario?

Accepted Answer

Yes. Many lenders allow you to offset 50–80% of projected rental income (from a basement suite or investment unit) against your monthly housing costs when calculating GDS/TDS ratios. This can significantly increase your borrowing power. Enter the rental income in this calculator to see the impact on your affordability.

Question 6

What are the first-time home buyer programs available in Ontario in 2026?

Accepted Answer

Ontario first-time buyers can access: (1) The First Home Savings Account (FHSA) — up to $8,000/year tax-free contributions; (2) The Home Buyers' Plan — withdraw up to $35,000 from your RRSP tax-free; (3) The First-Time Home Buyers' Tax Credit — a $10,000 federal credit worth about $1,500 in tax savings; (4) Ontario Land Transfer Tax rebate up to $4,000; and (5) Toronto Municipal Land Transfer Tax rebate up to $4,475.

Question 7

How does a mortgage pre-approval work in Canada?

Accepted Answer

A mortgage pre-approval locks in your interest rate for 90–130 days (depending on the lender) and confirms how much you can borrow. It involves a soft or hard credit check, income verification, and debt review. A broker pre-approval covers 50+ lenders in one application — multiple lender checks through one broker count as a single inquiry on your credit file.

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