In short
This section gathers Payotte's guides on home financing in Canada: what you can borrow, the down payment and mortgage insurance, choosing your mortgage, special situations (self-employed, plexes, bridge loans) and what happens during the loan (renewal, switching lenders, penalties). It is written for buyers and homeowners. Payotte is an independent directory: these pages inform, they do not replace advice from a mortgage broker or your institution.
Rates today
Bank of Canada · current as of October 8, 2026.Next policy rate announcements:October 28, 2026 and December 9, 2026. History and effect on your mortgage →
The journey in 4 steps
- Before you buy : Mortgage affordability: how much can you borrow? · What income do you need to buy a house? 65 Canadian cities · Down payment: the real cost of 5% instead of 20% · Mortgage Pre-Approval: What It Really Guarantees · HBP + FHSA: stacking both for a first home · First-time home buyer programs in Canada · Rent or Buy? The Monthly Gap in 16 Canadian Cities
- Choosing your mortgage : Fixed or variable mortgage rate: the real trade-off · 25- vs 30-Year Amortization: What It Really Changes · How to choose a verified mortgage broker
- Special financing cases : Self-employed mortgage: qualifying without a T4 · Alternative lenders: when the bank says no · Bridge loan: buying before selling · Financing a plex or income property in Quebec · Buying in undivided or divided co-ownership · Buying out your ex’s share of the house · Getting a mortgage after bankruptcy or a proposal · Buying with a parent as co-signer or guarantor · Construction loans and self-building
- During the mortgage : Mortgage renewal: avoiding the 2026 payment shock · Switching lenders at renewal: what to plan for · Refinancing and HELOC: unlocking home equity · Mortgage penalty: three months or IRD, the real math · What does it cost to discharge a mortgage? The three-layer bill · Transferring your mortgage: portability and assumption
The tools
Before you buy
- Mortgage affordability: how much can you borrow?
Two ratios (GDS 39%, TDS 44%), one higher rate: the affordability math explained. Example: $120,000 of income ≈ $485,000 of loan at the stress test —…
- What income do you need to buy a house? 65 Canadian cities (2026)
The household income required to buy the reference home in ~65 Canadian cities, computed at the current stress-test rate (published assumptions). Board…
- Down payment: the real cost of 5% instead of 20%
Below 20% down, mortgage insurance is mandatory: a 4% premium ($19,000 on $500,000), about $33,300 once financed, plus a sales tax due in cash in…
- Mortgage Pre-Approval: What It Really Guarantees (2026)
Income verified, credit pulled, rate held 60 to 130 days (CMHC) — but a pre-approval covers you, not the house. Pre-qualification vs pre-approval vs…
- HBP + FHSA: stacking both for a first home
The $60,000 HBP and the $40,000 FHSA stack for the same purchase: up to $100,000 of tax shelter per person, $200,000 for a couple — double the 20% down…
- First-time home buyer programs in Canada (2026)
Every first-time home buyer program in Canada in 2026: FHSA ($40,000), HBP ($60,000), HBTC ($1,500), new-home GST rebate (up to $50,000), plus…
- Rent or Buy? The Monthly Gap in 16 Canadian Cities (2026)
The real monthly gap between renting and buying in 16 major Canadian metros — CMHC rents, board prices, Bank of Canada rates. Two readings (cash outlay…
Choosing your mortgage
- Fixed or variable mortgage rate: the real trade-off
The rate is only the surface: the real difference is in the exit penalty ($5,000 vs $18,000 on $400,000) and the variable family (trigger rate). The gap…
- 25- vs 30-Year Amortization: What It Really Changes (2026)
Lower payment, lower qualifying income, more interest: the 30-year amortization's real effect on each Canadian city's reference home — who qualifies…
- How to choose a verified mortgage broker (2026)
Independent guide, with no rates: broker or bank, who pays the broker, AMF licence, pre-approval documents. The durable method to choose a good mortgage…
Special financing cases
- Self-employed mortgage: qualifying without a T4
Lenders qualify the self-employed on their two-year average NET income — not revenue. The quantified threshold (~$105,000 for a $500,000 home with 20%…
- Alternative lenders: when the bank says no
A bank refusal ≠ the end of the project: B lenders finance atypical files at a rate about 1 to 2 points higher plus fees. The 'price of yes' quantified…
- Bridge loan: buying before selling
A bridge loan advances the down payment locked in your unsold home, for the overlap between purchase and sale. Quantified cost: about $1,650 to bridge…
- Financing a plex or income property in Quebec
5% or 10% down if you live there, 20% otherwise, and up to 100% of rents counted: with the median plex price in 5 cities.
- Buying in undivided or divided co-ownershipQuebec rules
What you really own, the indivision agreement, the 60-day removal right and financing.
- Buying out your ex’s share of the houseQuebec rules
Sell, buy out or stay co-owners: what changes with your type of union, refinancing and the welcome tax.
- Getting a mortgage after bankruptcy or a proposal
Discharge timelines, how long it stays on your credit report, the 600 score and how to rebuild.
- Buying with a parent as co-signer or guarantor
Co-borrower, guarantor or down payment gift: what each role commits to, and the solidary surety in Quebec.
- Construction loans and self-buildingQuebec rules
When an RBQ licence is required, the GCR warranty, the loan paid out in draws and the GST rebate.
During the mortgage
- Mortgage renewal: avoiding the 2026 payment shock
The low-rate terms of 2020-2021 renew at much higher rates: the shock quantified (+$540/mo on $400,000, from 2.4% to 5%), your right to shop without a…
- Switching lenders at renewal: what to plan for
The statement 21 days ahead, when the stress test no longer applies (straight switch since Nov. 21, 2024), and the costs.
- Refinancing and HELOC: unlocking home equity
Borrowing up to 80% of your home's value without selling it: the 80/65 caps, refinancing vs HELOC, the worked debt-consolidation example (~$4,800/yr…
- Mortgage penalty: three months or IRD, the real math
Three months' interest (variable) or IRD (fixed, often inflated by the posted rate): both formulas explained, the worked example ($18,000 vs $5,000 on…
- What does it cost to discharge a mortgage? The three-layer bill
Lender fees in the $200–$400 range (capped at $75 in BC by law), land-registry filing of $50–$80, lawyer or notary billed on top where applicable. Who…
- Transferring your mortgage: portability and assumption
Keeping your mortgage when you move or having the buyer take it over: conditions, possible penalty, CMHC premium credit up to 100%.
Rates and market
- Canada policy interest rate: 2.25% — history and mortgage impact
The Bank of Canada policy rate, 2.25% today: current rates, the decision history since 2022, the announcement calendar, and what it concretely changes…
- Mortgage stress test: what rate are you qualified at?
The greater of 5.25% or your rate plus 2 points: the OSFI rule, when it applies and what it changes, at today’s rate.
The professionals
Find a verified mortgage broker
Payotte lists one verified mortgage broker per sector, scored out of 100 on public criteria. 68 cities have at least one:
Quebec
Ontario
British Columbia
Manitoba
Nova Scotia
Saskatchewan
New Brunswick
Newfoundland and Labrador
Prince Edward Island
Frequently asked questions
How much can I borrow to buy a home?
It depends on your income, your debts and the rate the lender qualifies you at: the stress test uses the greater of 5.25% or your rate plus 2 points. The affordability guide does the math, and the stress test guide explains the rule.
Do I have to renew my mortgage with the same bank?
No. A bank must send you a renewal statement at least 21 days before the end of the term, and you can switch lenders at maturity. The switching guide explains the costs to expect and when the stress test does or does not apply.
Can I keep my mortgage if I move?
Often, if your contract allows portability and the lender requalifies you. Otherwise, breaking the loan can trigger a penalty. The portability guide covers both options and their costs.
Mortgage broker or bank?
A bank only offers its own products; a broker compares several lenders. The “how to choose a mortgage broker” guide explains the difference and what to check.
General information, not financial advice. For your situation, consult a mortgage broker or your institution.