FAQ
Frequently Asked Questions
Straightforward answers to common mortgage questions.
What is a mortgage pre-qualification?
A pre-qualification is an initial review of your goals, income, and down payment to estimate a price range you may qualify for. It is not a commitment or formal approval — think of it as a starting point to guide your home search.
What is the difference between pre-qualification and pre-approval?
Pre-qualification is an informal estimate based on information you provide. Pre-approval involves a credit check and verification of income and assets, resulting in a conditional commitment from a lender for a specific amount and rate — usually valid for 90 to 120 days.
How much down payment do I need?
In Canada, the minimum down payment depends on the purchase price. For homes up to $500,000 the minimum is 5%. For the portion between $500,000 and $1,499,999 it is 10%. For homes $1,500,000 and above the minimum is 20%. We can walk you through the options that apply to your situation.
What are closing costs and how much should I budget for them?
Closing costs include land transfer tax, legal fees, title insurance, home inspection, and adjustments for property taxes or utilities. In Ontario, budget roughly 1.5% to 4% of the purchase price. First-time buyers in Ontario may qualify for a land transfer tax rebate of up to $4,000.
Do I need to renew with my current lender?
No. At renewal, you are free to shop around and switch to a different lender — often at no cost. Most lenders send a renewal offer 21 days before maturity, but starting the process 120 days early gives you time to compare and negotiate. We can review your renewal offer against current market rates.
What is the stress test?
The mortgage stress test requires you to qualify at the higher of your actual contract rate plus 2%, or the Bank of Canada benchmark rate (currently 5.25%). It applies to all insured and uninsured mortgages and is designed to ensure you can handle payments if rates rise.
Should I choose a fixed or variable rate?
It depends on your risk tolerance and financial situation. Fixed rates lock in your payment for the full term, giving you certainty. Variable rates may start lower but fluctuate with the Bank of Canada's overnight rate. We model both scenarios so you can see the potential cost difference over your term.
What does a mortgage broker do that a bank does not?
A bank offers its own products. A mortgage broker works with 50+ lenders — including banks, credit unions, and alternative lenders — to find the best rate, terms, and features for your situation. Our service is typically free to the borrower because lenders compensate us directly.
How long does the mortgage process take?
For a purchase, expect 2 to 6 weeks from pre-approval to closing, depending on the lender and property type. Renewals and refinances typically take 2 to 4 weeks. We outline each step and confirm expected timelines based on your specific situation.
What information should I have ready?
To get started, we need basic details: your target purchase price or current mortgage details, down payment amount, timeline, employment information, and an estimate of monthly debts. Additional documents (pay stubs, tax returns, bank statements) are requested once we move to formal application.
Can I use a gifted down payment?
Yes. Most lenders accept gifted funds from an immediate family member for the down payment. A signed gift letter confirming the funds are not a loan is required. We can provide the template and walk you through what your lender will need.
What happens if I break my mortgage early?
Breaking a mortgage before the end of your term usually triggers a prepayment penalty — either three months of interest or an interest rate differential (IRD), whichever is higher. The cost varies widely by lender and product. We can calculate your estimated penalty before you decide.
Is there a cost to work with The Taylor Team?
For most transactions, our service is free to you. Lenders pay us a commission when your mortgage closes. In some unique lending situations, a broker fee may apply — but this is always disclosed and agreed upon in writing before any commitment. You will never be surprised by a fee.
Do you serve areas outside Barrie?
Yes. While we are based in Barrie and primarily serve Simcoe County — including Innisfil, Orillia, Wasaga Beach, Collingwood, and Midland — we work with clients across Ontario. Most of our process can be handled virtually.
Can I refinance to consolidate debt?
Yes. If you have enough equity in your home, you can refinance to pay off higher-interest debts like credit cards or car loans. This can lower your overall monthly payments, but it also means you are securing that debt against your home. We review the numbers carefully to make sure it makes sense for your situation.
What government programs are available for first-time buyers?
Several programs may help: the First Home Savings Account (FHSA), the Home Buyers' Plan (RRSP withdrawal up to $60,000 per person), the Ontario Land Transfer Tax rebate (up to $4,000), and the federal First-Time Home Buyer Incentive (shared equity). We review which programs apply to you during the planning stage.
How do I book a call with your team?
Use the Book a Call button on any page to choose a time that works for you. The booking syncs with our calendar in real time, so you will get a confirmed slot immediately. If you prefer, you can also start by filling out our online mortgage plan form and we will reach out.
Is my personal information secure?
Yes. All form data is transmitted over HTTPS encryption and sent directly to our secure client management system — we do not store personal information on our web server. Our privacy practices comply with PIPEDA. See our Privacy Policy for full details.
Still have questions? Contact us or book a call.