TMG The Mortgage Group (Ontario) Inc.
Buying a Home & Mortgage Pre-Approval
Buying a home in Toronto & the GTA
Buying a home? Let’s figure out what you can comfortably afford.
Whether it’s your first condo or your next move, I’ll help you understand your budget, get pre-approved and go into your search with a plan.
Good to know
- Minimum down payment5% of the first $500,000 and 10% of the portion up to $1.5 million. Homes at $1.5 million or more need 20%.
- 30-year amortizationAvailable on insured mortgages for first-time buyers and buyers of newly built homes.
- First-time buyer tax reliefLand transfer tax refunds of up to $4,000 from Ontario and up to $4,475 from the City of Toronto.
Current federal and Ontario rules. Eligibility conditions apply.
Before you start looking
Budget chat or pre-approval?
Both are useful. Here’s the difference.
A budget conversation
We look at your income, debts and savings to find a price range that makes sense, and what the monthly payments would actually feel like.
A pre-approval
A lender reviews your documents and credit and holds a rate, usually for 90 to 120 days. It’s conditional, not a final approval: the property and your details still need to check out once you buy.
Be prepared
What you’ll need
Having these ready makes pre-approval quicker and gives you a more reliable answer.
- Government-issued photo ID
- Proof of income: recent pay stubs and an employment letter, or two years of tax documents if you’re self-employed
- Proof of your down payment, usually 90 days of account history, plus a gift letter if family is helping
- Details of any debts, like car loans, lines of credit or student loans
Buying in Toronto
Things to plan for
Closing costs
Budget for land transfer taxes, legal fees and adjustments on top of your down payment. In Toronto you pay both provincial and municipal land transfer tax.
Condo considerations
Monthly condo fees count toward what you can afford, and it’s worth having your lawyer review the status certificate before you firm up.
Less than 20% down?
You’ll need mortgage default insurance. The premium is usually added to your mortgage rather than paid upfront.
Fixer-upper?Planning renovations after you buy?
A purchase plus improvements mortgage can add the cost of eligible renovations into your mortgage. Ask me if it fits your plans.
Ask about it
Common questionsBuying questions
Don’t see yours? Ask it in the form below.
Is a pre-approval a guarantee?
No. A pre-approval tells you what a lender is likely to approve and holds a rate for a period of time. Final approval still depends on the property, an appraisal if needed, and your details being the same when you buy.
Can I use gifted money, an FHSA or my RRSP?
Yes. A gift from immediate family, your First Home Savings Account and the RRSP Home Buyers’ Plan can all go toward your down payment, each within its own rules and limits. I’ll help you plan how to use them.
Should I talk to you before a Realtor?
Ideally, yes. Knowing your budget and having a pre-approval in place helps you shop with confidence and move quickly when you find the right place.
Does a pre-approval affect my credit?
A pre-approval includes a credit check, which I’ll always ask your permission for first. A single inquiry typically has a small, temporary effect.
HomeBuyingRenewalsRefinancingSelf-employed & alternativeReverse mortgagesInvestment & vacationCalculatorsApply onlinePrivacy policy
Cory Parsons, Mortgage Agent Level 2 · TMG The Mortgage Group · FSRA Licence #10315 · 121 Harbord Street, Toronto, ON M5S 1G9 · cparsons@mortgagegroup.com · 647-567-2679
General information only, not financial advice. All mortgages are subject to lender approval. Rates, terms, fees and eligibility depend on the lender, the property and your circumstances, and rules can change. Down payment, amortization and land transfer tax figures reflect current federal, Ontario and City of Toronto rules.