Question 1

How much can I afford?

Accepted Answer

That depends on your income, debts, and the current qualifying rate. A pre-approval gives you a real number, not an estimate. For complex files — investors, self-employed borrowers, or buyers with existing properties — the answer requires a more detailed review. We do that work upfront.

Question 2

What is a mortgage pre-approval, and do I need one?

Accepted Answer

A pre-approval locks in a rate for up to 120 days and tells you exactly what you qualify for. In Toronto's move-up market, it also gives sellers confidence that your offer is solid. There is no cost and no obligation.

Question 3

How much do I need for a down payment?

Accepted Answer

In Canada, the minimum is 5% on homes up to $500,000, then 10% on the portion between $500,000 and $1,499,999. Homes at $1.5 million or above require 20% down. If your down payment is under 20%, you will need mortgage default insurance (CMHC, Sagen, or Canada Guaranty). For investment properties, the minimum is 20% down.

Question 4

What is the mortgage stress test?

Accepted Answer

Every borrower in Canada must qualify at the higher of their contract rate plus 2%, or 5.25%. This is a federal rule, not a lender choice. It is designed to ensure you can manage payments if rates move. For higher-value properties, this calculation matters more and is worth reviewing carefully before you make an offer.

Question 5

Fixed or variable — which is right for me?

Accepted Answer

Neither is always the better choice. Fixed gives you payment certainty over your term. Variable gives you flexibility and has historically cost less over time. For clients with complex files or investment properties, the right structure also depends on your exit strategy and timeline. We walk through both options so you decide with full information.

Question 6

What factors affect the rate I qualify for?

Accepted Answer

Credit score, down payment size, amortization period, property type, rental income (for investment properties), and whether the mortgage is insured. Access to dozens of lenders means we can often find better terms than a single bank can offer.

Question 7

What is the difference between a mortgage agent and a bank?

Accepted Answer

A bank offers its own products. A mortgage agent works with dozens of lenders, including banks, credit unions, and alternative lenders, to match your file with the best terms available. There is no cost to you for most residential mortgages. The lender pays the agent's fee.

Question 8

My renewal is coming up. What should I do?

Accepted Answer

Do not simply sign the renewal letter your lender sends. That is their opening offer, not their best one. A quick review with our team often finds better rates or terms. Start the conversation at least 120 days before your maturity date, especially if your situation has changed since you first financed.

Question 9

Can I refinance my mortgage?

Accepted Answer

Yes. You can refinance up to 80% of your home's current appraised value. Common reasons include debt consolidation, home renovations, accessing equity for a down payment on an investment property, or restructuring your mortgage when rates shift. There are costs involved, so we always run the numbers first.

Question 10

What happens if I break my mortgage early?

Accepted Answer

You will face a prepayment penalty. For variable-rate mortgages, it is typically three months of interest. For fixed-rate, it is the greater of three months of interest or the Interest Rate Differential (IRD), which can be significant. We can calculate the estimated penalty before you make any decisions.

Question 11

Can I buy an investment property in Toronto?

Accepted Answer

Yes, and we work with a lot of investors. Investment and rental properties require a minimum 20% down payment. Rental income from the property can often be used to offset the carrying costs in qualifying. The right lender and structure depend on how many properties you already hold and your long-term plan.

Question 12

I am self-employed. Can I still get a mortgage?

Accepted Answer

Yes. Self-employed borrowers are one of our specialties. You may qualify using stated income programs, business financials, or bank statement verification, depending on your situation. The key is matching your file with the lender whose criteria works for how you earn.

Question 13

What is bridge financing?

Accepted Answer

Bridge financing lets you close on a new property before the sale of your existing home completes. It is common in Toronto's move-up market. The bridge loan covers the gap between your two closing dates. Not all lenders offer it, and eligibility depends on the firm sale of your current home.

Question 14

Is there a cost to work with AG Mortgage Team?

Accepted Answer

For most residential mortgages, no. The lender pays the agent's fee. For private or alternative lending, there may be a broker fee. We always disclose any fees upfront, before you commit to anything.

Question 15

How long does the mortgage process take?

Accepted Answer

From application to closing, typically 30 to 45 days for a standard purchase. Complex files, investment properties, or pre-construction closings may take longer. Pre-approvals can be done in one to two days.

Mortgage FAQ

Every file is different. Let's talk through yours.