Question 1

Can I get a mortgage in Ontario if I'm self-employed?

Accepted Answer

Yes, absolutely. Self-employed home buyers in Ontario can qualify using standard tax documents (NOAs/T1 Generals) or through specialized 'stated income' alternative programs that evaluate 3-to-6 months of business bank statements. Dallas Martin will help you structure your application to secure the best rates.

Question 2

How much down payment do first-time home buyers need in Ontario?

Accepted Answer

The minimum down payment is 5% on the first $500,000 of the home purchase price, and 10% on the portion between $500,000 and $999,999. Homes priced at $1 million or more require a flat 20% down payment. FHSAs and RRSP home buyers plans can be utilized tax-free.

Question 3

How does refinancing to consolidate debt work in London, Ontario?

Accepted Answer

Refinancing allows you to break your current term and access up to 80% of your property's appraised value. You can use this home equity cash to pay off high-interest credit cards, loans, or car financing, consolidating them into your lower-rate mortgage to save hundreds monthly.

Question 4

What is a mortgage pre-approval and how long does it last?

Accepted Answer

A pre-approval is a preliminary lender qualification that holds your interest rate for 90 to 120 days. It protects you against rate increases while you house hunt, giving you an exact, verified budget and buying confidence.

Question 5

Can I buy a home with bad credit or past bankruptcy in Ontario?

Accepted Answer

Yes. While major banks require high credit scores, alternative and private equity lenders specialize in bad credit mortgages. Dallas Martin can arrange custom financing for clients with low credit, active credit rebuilding, or past consumer proposals.

Question 6

Is it better to choose a 3-year fixed or 5-year fixed mortgage right now?

Accepted Answer

A 3-year fixed mortgage offers shorter commitment and is highly strategic in a declining rate market, letting you renew to lower rates sooner. A 5-year fixed offers long-term stability but carries much higher early break penalties from the big banks.

Question 7

How can I secure the lowest mortgage rates in London, Ontario?

Accepted Answer

To get the lowest rates, work with an independent broker like Dallas Martin at NewLife Mortgages. Independent agents have access to institutional wholesale lending channels, forcing over 50 lenders to compete for your business and beating standard bank branches.

Question 8

What is a collateral charge mortgage and why should I avoid it?

Accepted Answer

A collateral charge lets banks register your mortgage for up to 125% of your home's value. While convenient for borrowing more equity later, it prevents you from switching to another lender at renewal without paying $1,000+ in legal fees. We structure standard charges whenever possible.

Question 9

What documents do I need to prepare for a mortgage approval?

Accepted Answer

T4 employees need a recent job letter, paystub, and 2 years of Notice of Assessments (NOAs). Self-employed clients require 2 years of full T1 Generals, NOAs, business registration/incorporation papers, and 3-6 months of business bank statements.

Ontario Mortgage Answers & Math

Have a Specific Mortgage Scenario?