Mortgage FAQ — Your Questions Answered

I get asked a lot of the same questions. Here are honest, straightforward answers — no jargon, no sales pitch. If your question isn't here, call or text me directly at 519-670-3205.

Reviewed by Tyler Stiller, CPA · Updated November 2026

The Basics

What does a mortgage broker do?

A mortgage broker shops your mortgage application to multiple lenders on your behalf — banks, credit unions, monoline lenders, and private lenders. Instead of you going to five banks and getting five different answers, I do that work for you and bring you the best options. I'm paid by the lender when your mortgage closes, so there's no cost to you in most cases.

Is using a mortgage broker free?

On most standard mortgages, yes. The lender pays my fee when your mortgage closes. In some cases (self-employed, credit challenges, private lending), a broker fee may apply — I'll always tell you upfront before we go anywhere near an application.

What's the difference between a mortgage broker and a bank?

A bank can only offer you their own products. A mortgage broker has access to 20+ lenders, so you're getting a real comparison rather than a single institution's best offer. Brokers can reach lenders a bank can’t, which matters most for self-employed clients, variable income, or anyone the bank considers non-standard.

Why use a broker instead of going straight to my bank?

Your bank's goal is to sell you their mortgage. My goal is to compare options across 20+ lenders and explain the trade-offs so you can choose. Those are not the same thing. Results depend on your file and the lender.

Getting Approved

What credit score do I need to get a mortgage in Ontario?

There’s no single cut-off. For an insured mortgage (under 20% down), CMHC requires at least one borrower to have a score of 600 or higher. That’s the insurer’s floor, not the lender’s. Most lenders want more than that, and the best rates usually go to scores of 680 and up. With 20% or more down, you don’t need mortgage insurance, so each lender sets its own minimum. Credit score is just one piece — income, down payment, and property type all factor in. If your score is lower than you'd like, let's talk. There are lenders who specialize in credit-challenged files, and there are often quick wins that can improve your score before you apply.

How much down payment do I need?

In Canada, the minimum down payment depends on the purchase price:

• $500,000 or less — 5% minimum

• $500,001–$1,499,999 — 5% on the first $500K, 10% on the remainder

• $1,500,000 or more — 20% minimum (no mortgage insurance available)

Down payment can come from savings, a gift from a family member, your RRSP through the Home Buyers’ Plan, a First Home Savings Account (FHSA), or a combination. With the Home Buyers’ Plan, you can take up to $60,000 each from your RRSP, and you have up to 15 years to pay it back. Repayments normally start in the second year after your first withdrawal. If your first withdrawal is between January 1, 2022 and December 31, 2028, repayments start in the fifth year after the year of that withdrawal. The FHSA is for first-time buyers. You can put in up to $8,000 a year ($40,000 lifetime), contributions are tax-deductible, and qualifying withdrawals for your first home are tax-free and never have to be paid back. I'll help you figure out what works for your situation.

How long does mortgage approval take?

A pre-approval can typically be done within 24–48 hours. A full approval after you have a signed offer usually takes 3–5 business days, sometimes faster. If you're on a tight timeline, tell me upfront and I'll work around your schedule. I aim to reply the same business day.

I'm self-employed. Can I still get a mortgage?

Yes — and this is exactly where a broker adds the most value. Banks are notoriously difficult for self-employed applicants because they look at net income after write-offs. Many of my self-employed clients qualify for more than they expect when we use the right lender and the right approach. There are lenders who specialize in stated income and business-for-self programs. Let's talk before you assume the answer is no.

I was declined by my bank. Can you still help?

Often yes. Banks have conservative lending criteria and they only offer their own products. A declined bank application is not the end of the road — it's a signal to look elsewhere. Depending on why you were declined, there may be options through alternative lenders or private lenders. I'll give you an honest answer and a clear path forward.

Rates and Costs

What mortgage rate will I get?

Rates change daily and depend on your specific situation — credit score, down payment, property type, amortization, and whether you want fixed or variable. I don't publish rates here because an advertised rate is often not the rate you'll actually get. Call me and I'll give you a real number based on your actual file — no guesswork.

Should I choose fixed or variable rate?

This depends on your risk tolerance, budget flexibility, and where rates are heading. A fixed rate gives you certainty — your payment doesn't change. A variable rate can save you money if rates drop, but your payment can increase if rates rise. There's no universally right answer. I'll walk you through the math on both and help you decide what fits your life.

What is CMHC mortgage insurance and do I need it?

If your down payment is less than 20%, your mortgage must be insured through CMHC, Sagen, or Canada Guaranty. The insurance premium (2.8%–4% of the mortgage amount for most buyers, depending on your down payment) is added to your mortgage balance. In Ontario, the 8% PST on that premium can’t be added to the mortgage — you pay it at closing. It protects the lender — not you — but it allows you to buy with a lower down payment. First-time buyers and anyone buying a new build can choose a 30-year amortization on an insured mortgage. That raises the premium rate by 0.20 percentage points (for example, 4.00% becomes 4.20%). A non-traditional down payment can also push the premium higher. It's not optional if you're below 20% down.

What other costs should I budget for when buying a home?

Beyond the down payment, budget for:

• Land transfer tax (Ontario) — about $6,475 on a $500,000 home, before any first-time buyer refund (it’s tiered, so it climbs with price)

• Home inspection — $400–$600

• Legal fees — $1,500–$2,500

• Title insurance — $200–$400

• Home insurance (required before closing)

• Moving costs

First-time buyers may qualify for a land transfer tax refund of up to $4,000. I'll make sure you know what to expect before closing day.

Renewals and Refinancing

Should I just sign my bank's renewal offer?

Compare before you sign. Your lender’s offer may or may not be the best one available to you. I’ll put it side by side with other lenders’ options so you can decide. If your bank’s offer is the best fit, you’ll know you made the right choice.

What is refinancing and when does it make sense?

Refinancing means breaking your existing mortgage and replacing it with a new one — usually to access equity, consolidate debt, or get a better rate. It makes sense when the interest savings or financial benefit outweigh the penalty for breaking early. Common reasons: consolidating high-interest credit card debt into your mortgage at a much lower rate, accessing equity for a renovation, or locking in a significantly better rate.

What is a HELOC?

A Home Equity Line of Credit lets you borrow against the equity you’ve built in your home. At most banks, the line itself can go up to 65% of your home’s value, and your mortgage plus HELOC together can’t exceed 80%. It's flexible — borrow what you need, when you need it, and only pay interest on what you use. Good for ongoing expenses like renovations or education. Not all lenders offer HELOCs and qualification criteria vary. I'll help you figure out if it's the right tool for what you're trying to accomplish.

Working with Tyler

Where are you located and who do you serve?

I'm based in Strathroy, Ontario (2 Front St W) and I serve clients across all of Southwestern Ontario — London, St. Thomas, Chatham, Sarnia, Woodstock, Stratford, Windsor, and dozens of communities in between. Everything can be handled remotely — phone, email, and digital signing. You don't need to come to an office.

Are you licensed?

Yes. I’m licensed as a mortgage broker with the Financial Services Regulatory Authority of Ontario (FSRA), Licence #M20002930, and I work through Dominion Lending Centres National Ltd. (brokerage Licence #12360). You can verify my licence at fsrao.ca.

How do I get started?

Call or text me at 519-670-3205 or email tyler@stillermortgage.com. There's no obligation and no cost for an initial conversation. I'll ask you a few questions, tell you where you stand, and outline your options. Most people leave that first call with a clear picture they didn't have before.

Tyler Stiller, CPA | Licensed Mortgage Broker | FSRA #M20002930 | Dominion Lending Centres National Ltd., Brokerage #12360
Serving Strathroy, London, St. Thomas, Chatham, Sarnia, Woodstock, Stratford & all of Southwestern Ontario
519-670-3205 | tyler@stillermortgage.com | tylerstiller.ca