Buying A Home, The 30,000 Foot View

Expert Financing • December 18, 2018

Did you know that the average Canadian will spend roughly 11 months actively engaged in the house buying process? However, most of the dreaming (and preparation) happens before then. Buying a home is a big deal, and it's a decision that shouldn't be taken lightly. With all the recent changes by the Canadian government tightening mortgage qualification, you can never be too prepared!

Even if you don't plan to buy for a couple years, there is only so far general information can take you. Each person is different, as are their financial situations. So if you'd like to discuss your personal financial situation, feel free to contact us anytime. We would love to work with you!

With that said, here is a 30,000 foot view of what you need to know about buying a home, as it relates to mortgage financing.

Are You Credit Worthy?

First things first, do you have a good credit? Having good credit is of paramount importance when applying for a mortgage. Establishing a good credit score takes some time, most lenders want to see that you have managed your credit well over a minimum of a 2 year period.

Even if you have a huge downpayment and manage your money perfectly, and the idea of debt disgusts you, having an established history of borrowing and repaying money is crucial. It's really hard to get mortgage financing without a credit history.

How Will You Repay Your Mortgage?

If a lender is going to lend you money to buy a property, they are going to want to know you have the means to pay them back. They want to know that you have a steady job, and will make you prove it through documentation. Depending on how you get paid, lenders will want to see an employment letter, pay stubs, your T1Generals, Notice of Assessments, and really anything else they feel gives them an accurate picture of how much money you make!

Do You Have A Downpayment?

In order to borrow money from a financial institution, you're going to have to bring some money to the table. Of course the best downpayment comes from an accumulation of your own resources, but there are other sources of downpayment that are available to you. A 5% downpayment will be the bare minimum required, and depending on the purchase price, it might be more.

It's important to know that you will have to prove the source of all downpayment funds. This can typically be done through 90 days of bank statements. The lenders (and government) want to ensure that you aren't purchasing the property with the proceeds of crime, and laundering money. Just know that there will be heavy scrutiny on where you got your downpayment.

As houses become more expensive, a lot of parents have decided to help their kids with the purchase of a property by gifting downpayment funds for a downpayment.

How Much Can you Afford?

What you can afford on paper and what you can afford in real life are often very different. The amount you qualify to borrow is based on way too many things to include in a single article. And the rules keep changing. Most recently, the government has introduced a financial "stress test" that forces buyers to qualify at a mortgage rate that is at least 2% higher than the rate they will pay.

So once you are ready to actually start shopping, or even months before then, it's a good idea to sit down with an independent mortgage professional who can work through your unique financial situation and will let you know exactly what you can afford to spend on a property.

Regardless of where you are in the home buying process, it's never too early to give us a call! My goal is to walk you through the process from start to finish, even if that is a matter of years, instead of months. Contact us anytime, we'd love to work with you!

Rebecca Harrap & 
Wendy Whiting
EXPERT FINANCING

CONTACT US
RECENT POSTS

Don’t Let Collections Derail Your Mortgage Application

By Expert Financing • October 23, 2025
Can You Get a Mortgage If You Have Collections on Your Credit Report? Short answer? Not easily. Long answer? It depends—and it’s more common (and fixable) than you might think. When it comes to applying for a mortgage, your credit report tells lenders a story. Collections—debts that have been passed to a collection agency because they weren’t paid on time—are big red flags in that story. Regardless of how or why they got there, open collections are going to hurt your chances of getting approved. Let’s break this down. What Exactly Is a Collection? A collection appears on your credit report when a bill goes unpaid for long enough that the lender decides to stop chasing you—and hires a collection agency to do it instead. It doesn’t matter whether it was an unpaid phone bill, a forgotten credit card, or a disputed fine: to a lender, it signals risk. And lenders don’t like risk. Why It Matters to Mortgage Lenders? Lenders use your credit report to gauge how trustworthy you are with borrowed money. If they see you haven’t paid a past debt, especially recently, it suggests you might do the same with a new mortgage—and that’s enough to get your application denied. Even small collections can cause problems. A $32 unpaid utility bill might seem insignificant to you, but to a lender, it’s a red flag waving loudly. But What If I Didn’t Know About the Collection? It happens all the time. You move provinces and miss a final utility charge. Your cell provider sends a bill to an old address. Or maybe the collection is showing in error—credit reports aren’t perfect, and mistakes do happen. Regardless of the reason, the responsibility to resolve it still falls on you. Even if it’s an honest oversight or an error, lenders will expect you to clear it up or prove it’s been paid. And What If I Chose Not to Pay It? Some people intentionally leave certain collections unpaid—maybe they disagree with a charge, or feel a fine is unfair. Here are a few common “moral stand” collections: Disputed phone bills COVID-related fines Traffic tickets Unpaid spousal or child support While you might feel justified, lenders don’t take sides. They’re not interested in why a collection exists—only that it hasn’t been dealt with. And if it’s still active, that could be enough to derail your mortgage application. How Can You Find Out What’s On Your Report? Easy. You can check it yourself through services like Equifax or TransUnion, or you can work with a mortgage advisor to go through a full pre-approval. A pre-approval will quickly uncover any credit issues, including collections—giving you a chance to fix them before you apply for a mortgage. What To Do If You Have Collections Verify: Make sure the collection is accurate. Pay or Dispute: Settle the debt or begin a dispute process if it’s an error. Get Proof: Even if your credit report hasn’t updated yet, documentation showing the debt is paid can be enough for some lenders. Work With a Pro: A mortgage advisor can help you build a strategy and connect you with lenders who offer flexible solutions. Collections are common, but they can absolutely block your path to mortgage financing. Whether you knew about them or not, the best approach is to take action early. If you’d like to find out where you stand—or need help navigating your credit report—I’d be happy to help. Let’s make sure your next mortgage application has the best possible chance of approval.

Smart Steps to Get Your Home Market-Ready

By Expert Financing • October 9, 2025
Thinking About Selling Your Home? Start With These 3 Key Questions Selling your home is a major move—emotionally, financially, and logistically. Whether you're upsizing, downsizing, relocating, or just ready for a change, there are a few essential questions you should have answers to before you list that "For Sale" sign. 1. How Will I Get My Home Sale-Ready? Before your property hits the market, you’ll want to make sure it puts its best foot forward. That starts with understanding its current market value—and ends with a plan to maximize its appeal. A real estate professional can walk you through what similar homes in your area have sold for and help tailor a prep plan that aligns with current market conditions. Here are some things you might want to consider: Decluttering and removing personal items Minor touch-ups or repairs Fresh paint inside (and maybe outside too) Updated lighting or fixtures Professional staging Landscaping or exterior cleanup High-quality photos and possibly a virtual tour These aren’t must-dos, but smart investments here can often translate to a higher sale price and faster sale. 2. What Will It Actually Cost to Sell? It’s easy to look at the selling price and subtract your mortgage balance—but the real math is more nuanced. Here's a breakdown of the typical costs involved in selling a home: Real estate agent commissions (plus GST/HST) Legal fees Mortgage discharge fees (and possibly a penalty) Utility and property tax adjustments Moving expenses and/or storage costs That mortgage penalty can be especially tricky—it can sometimes be thousands of dollars, depending on your lender and how much time is left in your term. Not sure what it might cost you? I can help you estimate it. 3. What’s My Plan After the Sale? Knowing your next step is just as important as selling your current home. If you're buying again, don’t assume you’ll automatically qualify for a new mortgage just because you’ve had one before. Lending rules change, and so might your financial situation. Before you sell, talk to a mortgage professional to find out what you’re pre-approved for and what options are available. If you're planning to rent or relocate temporarily, think about timelines, storage, and transition costs. Clarity and preparation go a long way. The best way to reduce stress and make confident decisions is to work with professionals you trust—and ask all the questions you need. If you’re thinking about selling and want help mapping out your next steps, I’d be happy to chat anytime. Let’s make a smart plan, together.