Owning a home and managing your mortgage

Owning a home and managing your mortgage

ByStan S.

Use our tools and resources to ensure you’re getting the most out of home ownership.

Tips and resources to help you manage your mortgage like a pro

The following considerations can help you to save money when financing a home. They can provide for greater economic stability in the event of financial challenges down the road. Examples of this would be lower income levels, increased monthly expenses and/or higher interest rates.

Mortgage fraud

The promise of “easy money in real estate” can be hard to resist. Consumers who knowingly misrepresent information could find themselves becoming accomplices to mortgage fraud.

Mortgage fraud is the deliberate misrepresentation of information to obtain mortgage financing that would not have been granted if the truth had been known.

Mortgage fraud includes:

  • misstating your work position, your income or the length of time you’ve held your job
  • stating you’re a full-time salaried employee if you are not
  • misrepresenting the amount or source of your down payment
  • claiming a rented property is owner-occupied
  • not disclosing other mortgages or debts
  • omitting information to inflate the value of the property
  • adding purchasers’ names on the mortgage application who will do not intend to take responsibility for the mortgage
  • acting as or using a “straw buyer” – a person whose good credit is used to get a mortgage for someone else

Borrowers who misrepresent information and straw buyers who allow a property to be purchased in their name are committing mortgage fraud and will be liable for any financial shortfall in the event of default. They may also be held criminally responsible for their misrepresentation.

Protect yourself

Never deliberately misrepresent information when applying for a mortgage. In addition:

  • Don’t add your name to another person’s mortgage unless you plan to make payments on it.
  • Don’t sign papers until you understand them. If necessary, seek legal advice or have them translated.
  • If you make a deposit on a home, don’t give it directly to the seller. Make sure it is held “in trust” by the seller’s realty company or a lawyer/notary.
  • Before you buy a property, get its sales history through the land titles office or consider having it inspected and appraised. Check with a lawyer to see if anyone other than the seller has a financial interest in it or if there are any outstanding liens or tax arrears.
  • Always know who you are doing business with. Deal with licensed or accredited mortgage and real estate professionals.
  • Get independent advice from a lawyer/notary. Talk to them about title insurance or alternative methods of protection.

Be wary of anyone who approaches you with an offer to make “easy money” in real estate. If a deal sounds too good to be true, it probably is.

Report fraud

If you suspect that you’ve been the victim of mortgage fraud, contact your local police department. Or contact the Canadian Anti-Fraud Centre.

Toll-free phone: 1-888-495-8501

Mortgage planning tips

Whether you are buying a home or refinancing an existing home, it is important to make informed housing finance decisions that will help make homeownership viable and affordable over the long term.

By planning your mortgage out in advance, you’ll save money and be better prepared to deal with any financial setbacks.

Borrow less than you’re allowed

Mortgage professionals use 2 rules to decide how much they’ll lend you:

  • Your housing costs shouldn’t be more than 32% of your gross income. Housing costs include mortgage principal and interest, taxes, heating expenses and half of your condo fees.
    Find out the home-related costs you can afford each month. Calculate your gross debt service ratio.
  • Your total debt (for housing, cars and credit cards) shouldn’t be more than 40% of your gross income.
    Find out the maximum debt load you can carry each month. Calculate your total debt service ratio.

But borrowing this maximum amount can be risky. If your income drops, your expenses increase or interest rates rise, you may have trouble making your payments. Take on a smaller mortgage so that your housing costs stay within your means.

Estimate the maximum mortgage you can afford with our mortgage affordability calculator.

Figure out how much you’ll pay and how often you’ll make payments with our mortgage payment calculator.

Compare your income and expenses to see how a mortgage will fit into your budget with our household budget calculator.

Think about how higher interest rates would affect your payments

An increase in the interest rate will increase your future monthly payments. For example, if interest rates rise from 5% to 7%, renewing a $250,000 mortgage will cost an extra $300 per month.

Pay off your mortgage faster

Try to pay more each month:

  • Increase your regular payment amount. Pay $675 rather than $652, for example.
  • Make lump sum payments to your mortgage principal. An extra $1,000 here and there can make a big difference.
  • Make accelerated payments. Instead of making 2 payments per month (24 per year), make payments every two weeks (26 per year).
  • Speak to your mortgage professional about other options.

By paying more now, you’ll save money in the long run and you’ll build a financial cushion.

Seek help right away if you can’t make your payments

Your lender can help you deal with financial setbacks. Don’t wait. Let them know if you’re having financial issues.

Plan and manage your mortgage

Take the time to plan and review your mortgage options, terms and conditions and prepare yourself for managing your mortgage.

Whether you are buying a home or refinancing an existing home, it is important to make informed housing finance decisions. Take the time to plan and review your mortgage options, terms and conditions and prepare yourself for managing your mortgage.

Mortgage Planning Tips
Use these tips to help you to save money and provide for greater economic stability in the event of financial challenges down the road.

Homebuying Calculators
Easy to use mortgage tools to help you establish your financial situation, determine how much house you can afford and the maximum price that you should be considering.

Your Credit Report
Here are some simple steps you can take to maintain a good credit score and history and improve your chances of being approved for a mortgage.

Your Home Value
Determining a property’s value is an essential step in the mortgage application process. You can help by providing precise and accurate information about your property to your Mortgage Professional.

Mortgage Fraud
Find out how to protect yourself when purchasing or refinancing a home.

Dealing-with-Mortgage-Payment-Difficulties

Learn how you can work with your lender to find the best solution for your mortgage payment problems. 

Related CMHC Information

Related Links

Your credit report

A good credit report and credit score are important factors in determining whether or not you will be approved for a mortgage. Here are some simple steps you can take to maintain a good credit history and improve your chances of being approved.

Build a good credit history and you’ll improve your chances of being approved for a mortgage.

What is a credit score?

Your credit score is one of the factors lenders use when they consider you for a mortgage. It’s a number that signals your financial health at a specific time. It also gives information about your financial past, and how consistently you pay off your bills and debts.

Check your credit score

Find your credit score through one of Canada’s credit-reporting agencies:

For a fee, they will provide you with an online copy of your credit score as well as a credit report. Your credit report is a detailed summary of your credit history, employment history and personal financial information. They can also send you a free copy of your credit report by mail.

If you find errors in your report, contact the credit-reporting agency and the organization responsible for the mistake right away.

Build your credit score

Begin building a credit history as early as possible. To start, apply for a credit card, then use it responsibly.

Improve your credit score

Show potential lenders that you can manage credit well:

  • Pay your bills in full and on time. If you can’t pay the full amount, pay at least the required minimum shown on your monthly statement.
  • Pay off your loans, credit cards and lines of credit as quickly as possible.
  • Stay within the limits on your credit cards. Keep your balances as low as possible.
  • Don’t apply for more credit cards or loans than you can comfortably manage.

For more information, download the Financial Consumer Agency of Canada’s workshop on understanding your credit report and score.

Your home value

Whether you are purchasing a home or looking to refinance, determining a property’s value is an essential step in the mortgage application process.

Property value is key to determining the amount of the mortgage you’ll be offered.

How home value is measured

A home’s value is based on its features. These include square footage, location, age, quality and number of bedrooms and bathrooms.

A property’s value isn’t fixed. It’s a snapshot of what it’s worth in the current market in relation to what similar properties are selling for. Renovations will affect a home’s value. So will changes to the neighbourhood and in the housing market.

What you need to do

When you apply for a mortgage, your lender will ask you questions about the property. You’ll also need to give details about any renovation costs you plan to add to your mortgage.

Collect the information you’ll need in order to answer accurately by using our .

Professional home appraisal

The Appraisal Institute of Canada could help you or your lender during that process. Their guide (PDF) outlines all the steps to follow in order to perform a detailed assessment of your home.

Get the amount you need

If your home appraisal doesn’t support the mortgage amount you want, talk to your lender and real estate agent. They can help you explore your options.

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    Renovate or Relocate? How to Decide When Your Home No Longer Fits

    ByStan S.

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  • Free Vancouver and Lower Mainland Events in July

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    Term vs Permanent Life Insurance: Which One Makes Sense for You Right Now?

    ByStan S.

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    Does Canadas Declining Birth Rate Mean More Housing Availability?

    ByStan S.

    With the Canadian real estate market currently facing historically low sales activity, dropping property values, and growing inventory, many people have deluded themselves (and even some others) into believing that this is how things will be from now on and for many years to come. They want to think that we will somehow witness a total reversal of decades of home price increases until we start seeing houses worth 20% of what they cost today. Some pseudo-economists have even gone so far as to point at Canada’s declining birth rate, which is slated to stop keeping pace with our increasing death rate in 2030, as proof that our housing supply surplus will be even greater than it is currently. But this is a foolish, inaccurate, and short-sighted way of thinking. So today, we will be busting the myth that Canada’s declining birth rate will mean more housing availability and affordability. The Truth About Supply and Population First of all, Canada’s property values have been increasing steadily for decades, despite short-term dips and spikes. The real estate market is cyclical, and we have seen market highs tempered by market lows and vice versa. In the long run, however, homes are absolutely essential and prove their resilient value over long periods of time. The temporary jump in Canadian housing prices in 2022 may have resulted in a harsh correction in 2025, but we can still expect the market to readjust itself later and resume its steady decades-long climb based on how prices have increased for nearly 50 years. Secondly, Canada’s population and economic growth have always relied heavily on immigration, which is still healthy and robust—to the point that we have needed to lower our previously too-ambitious immigration targets to achieve sustainable growth. Our old 2023-2025 immigration plan brought in around half a million people annually, which caused a lot of stress to the housing market and infrastructure, as cities and provinces were unprepared for such a high rate of population growth. In fact, Canada hit a population milestone of 40 million people in 2023! A serious adjustment was required, which is why the new 2025-2027 immigration plan reduced the population inflow by more than 20%. But this does not mean our population will shrink! Any nation in the world requires its population to grow by at least 1% each year in order to maintain its GDP growth. Therefore, Canada plans to welcome just under 1% of its population as permanent residents and around 5% as temporary residents for the next three years, instead of the previous immigration rate of 1.25% permanent residents and 7.5% temporary residents. The country will adjust its immigration targets regularly, which is why Canada’s birth and death rates are not significant factors for the housing market. Population and Immigration Projections According to Statistics Canada Total Population in 2025 41.5 million Total Population in 2027 42.26 million Permanent Resident Admissions Target (1% of population) ~422,600 Temporary Resident Admissions Target (5% of population) ~2,100,000 As we can see, constant and necessary immigration is why housing will remain valuable and demand will continue to outpace supply in the long term, even as we currently see sliding housing prices and ballooning inventory in the short term. Where the Market is Heading? With today’s situation, we can foresee that 2025’s lack of housing presales will mean virtually zero construction will occur in 2026 and 2027, meaning no new inventory will be added in 2028. This is poised to spark a new cycle in the market, as low supply and high demand will drive prices back up again. In addition, the overall future of housing in Canada is deliberately heading towards rentals rather than ownership. Both the government and developers are focusing their efforts toward building purpose-built rental housing, which means condo development is expected to fall by the wayside. This means future homeowners will have fewer options when looking for starter homes as they compete for a smaller selection of resale homes or more expensive low-rise pre-construction homes. Therefore, first-time home buyers have a small window of opportunity to break into the housing market while conditions are currently favourable. In a few short years, there will be fewer housing options and higher prices, making it harder for Canadians to switch from renting to buying. Seize your opportunity now with the expert guidance of GTA-Homes! Our agents are ready to walk you through the homebuying process and help you realize your dreams of homeownership. The post Does Canada’s Declining Birth Rate Mean More Housing Availability? appeared first on Realinsights.

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  • 5 Mortgage Myths That Could Be Holding You Back

    ByStan S.

    There’s no shortage of mortgage advice out there. From online forums to coffee shop conversations, everyone seems to have an opinion. Some of it’s helpful. A lot of it? Not so much. The truth is, the mortgage world has changed—especially in Canada. Rules, products, and opportunities evolve, but a lot of the advice being passed around hasn’t kept up. So let’s slow it down and clear up five of the most common myths heard from homeowners and buyers alike—because sometimes, knowing what’s not true can be just as powerful as knowing what is. Myth #1: You Need 20% Down to Buy a Home This one stops a lot of buyers before they even get started. Yes, putting 20% down eliminates the need for mortgage default insurance, but it’s not a requirement—especially for first-time buyers. In Canada, if the home is under $500,000, you can get in with just 5% down. For homes between $500,000 and $1,499,999, the minimum down payment is tiered: 5% on the first $500K, and 10% on the remainder. The result? You don’t need to hit that 20% mark to make homeownership a reality. And while you will pay mortgage insurance with less than 20% down, it’s often a worthwhile trade-off if it means entering the market sooner or keeping cash on hand for emergencies, renovations, or investments. Myth #2: Your Bank Is the Best Place to Get a Mortgage It might feel easier to “just go with your bank,” especially if that’s who you’ve always dealt with. But here’s the thing: your bank can only offer their rates, terms, and products. That’s it. A mortgage broker isn’t tied to one institution. They work with multiple lenders—including banks, credit unions, and independent mortgage companies—to find the product that fits your specific goals and circumstances. That matters a lot if you’re self-employed, have less-than-perfect credit, or just want a better deal. More options = more negotiating power, better structure, and a greater chance of finding a mortgage that actually aligns with your life. Myth #3: The Lowest Rate Is Always the Best Deal We’ve all seen the ads. “Lowest mortgage rate in Canada!” Sounds great—until you read the fine print. Some of the lowest-rate mortgages out there come with significant limitations: strict penalties if you break the term early, zero prepayment privileges, or clauses that make it difficult to move or refinance. And in real life, those things matter. What if you need to break your mortgage to access equity? Or sell unexpectedly? Or refinance to consolidate debt? The best mortgage isn’t just about the rate—it’s about flexibility, protection, and long-term cost. A slightly higher rate on a mortgage that fits your life could save you far more in the end than a “no-frills” option with hidden landmines. Myth #4: You Have to Wait Until Your Term Is Up to Refinance Many people think they’re locked in until their term ends. That’s not true. You can refinance a mortgage before the term is over. Yes, there may be a penalty—but in some cases, it’s more than worth it. For example, if you’re carrying high-interest debt, funding a major renovation, or need to tap into your home equity for a business or investment, the potential savings or returns may easily outweigh the cost of breaking the mortgage. The key is running the numbers. A good mortgage advisor will help you calculate whether it makes sense now—or if it’s better to wait. Myth #5: Renewing with Your Current Lender Is the Easiest—and Smartest—Move When your mortgage comes up for renewal, it’s tempting to take the path of least resistance. Your current lender sends a renewal notice, and all you have to do is sign. But here’s what many people don’t realize: lenders often reserve their best rates and promotions for new customers, not existing ones. In fact, renewing without shopping around could mean paying more than you need to—sometimes for the next five years. Renewal time is a golden opportunity to review your situation, compare options, and even adjust your mortgage strategy. You’ve got leverage, and you should use it. The Bottom Line There’s a lot of noise out there. And while mortgage advice might be well-intentioned, it’s not always accurate—or right for your situation. Getting clarity means asking better questions, exploring your options, and working with someone who looks beyond just rate. Whether you’re buying your first home, refinancing to unlock equity, or preparing for renewal, having the right information (and the right support) can make a huge difference in your financial future. Because in the mortgage world, the right strategy is worth more than the right guess.

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