Canadian Mortgage FAQ — Expert Answers

Everything you need to know about mortgages in Canada

Our licensed mortgage brokers are ready to help — no obligation.

The minimum credit score for an insured mortgage in Canada is 640. Conventional mortgages (20%+ down payment) typically require 680+. The higher your score, the more lenders compete for your business — and the better your rate.

In Canada, the minimum down payment is 5% for homes under $500,000. Homes between $500K–$999,999 require 5% on the first $500K and 10% on the remainder. Homes over $1M require 20% down and do not qualify for CMHC insurance.

A fixed rate mortgage locks your interest rate for the full term (typically 1–5 years), giving payment certainty regardless of market moves. A variable rate mortgage fluctuates with the prime rate — currently lower than most fixed options, but your payment can rise if the Bank of Canada increases rates.

Mortgage pre-approval is a lender's conditional commitment to lend you up to a specific amount at a specified rate. It takes 15–30 minutes, requires income verification and a credit check, and is valid for 90–120 days — protecting you if rates rise while you house-hunt.

The Canadian mortgage stress test requires you to qualify at the higher of your contract rate +2% or 5.25%. As of 2026, most borrowers must qualify at roughly 6.5–7% even if their actual rate is lower — this limits how much you can borrow and applies to all federally regulated lenders.

As long as you maintain the home, pay property taxes and insurance, and live there as your primary residence, you cannot be forced to sell. Canada's main reverse-mortgage providers — including HomeEquity Bank (CHIP) and Equitable Bank — include a 'no negative equity guarantee.'

Plain-English answers to Canada's most common mortgage questions. Stress tests, CMHC, renewals, qualifying, pre-approvals — no jargon, just what you need to know.