Getting A Mortgage In Ontario - Compare Providers
| Lender | Loan amount | Rate | Term | Details |
|---|---|---|---|---|
 Spring Financial Personal Loan | $500 – $35,000 | 9.99% – 34.95% | 6 – 84 months | Learn more |
 LendDirect Personal Line of Credit | Up to $10,000 | 34.99% | Open-ended | Learn more |
 Mogo Finance Line of Credit | Up to $5,000 | 34.37% | Not listed | Learn more |
 easyfinancial Personal Loan (Unsecured) | $500 – $150,000 | 9.99% – 34.95% | 9 - 240 months | Learn more |
 Fairstone Financial Unsecured Personal Loan | $500 – $25,000 | 29.99% – 34.99%* | 6 – 60 months | Learn more |
 MDG Cash Installment Loan | Up to $20,000 | 19.8% – 34.99% | 36 – 85 months | Learn more |
 Fora Line Of Credit | $1,000 – $15,000 | 19.9% – 34.9% | Not listed | Learn more |
 Money Mart Installment Loan | $500 – $25,000 | 29.9% or 34.28% | 6 – 84 months | Learn more |
 SkyCap Financial Personal Loan | $500 – $100,000 | 12.99% – 34.99% | 9 – 60 months | Learn more |
 Cashco Financial Personal Loan - Flex Loan | Up to $9,000 | 35% | 6 – 60 months | Learn more |
 Magical Credit Magical Installment Loans | up to $20,000 | 19.99% – 35% | 12 - 60 months | Learn more |
 LoanMeNow Personal Loan | $500 – $1000 | Up to 32% | 3 months | Learn more |
 Green Loans Personal Loan | Up to $1,000 | Up to 35% | Not listed | Learn more |
 AimFinance Personal Loan | $100 – $1,000 | 29% – 35% | 9 – 24 months | Learn more |
 goPeer Personal Loan | $1,000 – $35,000 | 8.99% – 34.99% | 36 or 60 months | Learn more |
 GoLoans Installment Loan | $500 – $5,000 | Up to 32% | 3 – 4 months | Learn more |
 LendCare Installment Loan | $500 – $15,000 | 9.9% – 29.9% | 12 – 60 months | Learn more |
 Ledn Bitcoin-Backed Loan | $1,000 – $1,000,000 | 10.4% | 12 months | Learn more |
 Borrowell Personal Loan | Up to $35,000 | Starting at 12.99% | Up to 60 months | Learn more |
 Windmill Microlending Professional development loans | $15,000 | 6.7% | Up to 60 months | Learn more |
 Parachute Personal Loan | Up to $25,000 | 24.99% – 29.99% | 30 or 60 months | Learn more |
 Helium Loans Personal Loan | $500 – $50,000 | Varies | 6 – 60 months | Learn more |
 Fast Access Financial Personal Loan | $1,000 – $5,000 | Starting at 9.90% | 12 – 36 months | Learn more |
 514 Loans Personal Loan | $300 – $3000 | 22% – 32% | 3 – 4 months | Learn more |
 Loan & Go Micro Loan | $250 – $1,250 | 29% – 32% | 3 – 6 months | Learn more |
 Cash Depot Short-Term Loan | $300 – $3000 | 18% + fees | 6 months | Learn more |
 Financeit Personal Loans | $500 – $100,000 | Starting at 12.99% | Up to 60 months | Learn more |
 SimplyBorrowed Personal Installment Loan | $1,500 – $10,000 | Not listed | 12 – 60 months | Learn more |
 LM Credit Unsecured Personal Loan | $500 – $15,000 | 10.99% – 34.99% | 9 – 60 months | Learn more |
 Dashloans Personal Loan | Up to $1,250 | Up to 32% | 90 – 150 days | Learn more |
 Captain Cash Personal Loan | $500 – $1000 | 23% | 90 – 150 days | Learn more |
 Lamina Personal Loan | $300 – $1500 | Starting at 18% | 3 – 7 months | Learn more |
 Credit Club Short Term Loan | $100 – $1,500 | $14 per $100 | Up to 62 days | Learn more |
 Cash 4 You Installment Loan | $500 – $20,000 | Up to 34.37% APR | 6 – 84 months | Learn more |
 DMO Crédit Personal Loan | $300 – $1,000 | 28% – 35% | 90 days – 16 weeks | Learn more |
 Prudent Financial Services Equity Personal Loan | From $5,000 | 19.99% – 34.99% | 6 – 48 months | Learn more |
 Loan Away Personal Loan | Up to $5,000 | 19.9% – 35% | 6 – 36 months | Learn more |
 Credit2Go Short Term Loan | $250 – $1,500 | 23.99% – 29.99% | 3 – 4 months | Learn more |
 Eastern Loans Personal Loan | $500 – $750 | ~23% | 3+ months | Learn more |
 Progressa Debt Consolidation Loan | $1,000 – $15,000 | 19% – 34.95% | 12 – 60 months | Learn more |
 LM Financial Personal Loan | Up to $15,000 | Not listed | Not listed | Learn more |
 Iceberg Finance Personal Loans | $1,000 – $35,000 | 12.99% – 29.99% | 12 – 84 months | Learn more |
 Afterpay Buy Now Pay Later | Varies | 0% | 6 or 8 weeks | Learn more |
 FlexMoney Installment Loan | $500 – $15,000 | Starting at 18.9% | 6 – 60 months | Learn more |
 Deposit My Cash Now Micro Loan | $300 – $3000 (first-time clients can receive up to $1,000) | 18% + fees | 6 months | Learn more |
 My Next Pay Micro Loan | $300 – $3000 (first-time clients can receive up to $1,000) | 18% + fees | 6 months | Learn more |
 Northstar Brokers Micro Loan | $300 – $3000 (first-time clients can receive up to $1,000) | 18% + fees | 6 months | Learn more |
 City Lending Centers (CLC) Micro Loan | $150 – $1,600 | 10 – 35% | 3 – 6 months | Learn more |
 Alterfina Cash Advance | $500 – $2,500 | 18.99% | Not listed | Learn more |
 APX Lending Crypto-Backed Loan | $10,000; no maximums | From 9.99% | 3 - 60 months | Learn more |
 Loonie Financial Installment Loan | $300 – $1,000 | Up to 32% APR (advertised) | 62 – 160 days | Learn more |
| Lender | Loan amount | Rate | Term | Details |
|---|---|---|---|---|
 iCash Payday Loan | Up to $1,500 | $14 per $100 | Up to 62 days | Learn more |
 CashMoney Payday Loan | Up to $10,000 | Up to 34.99% | Up to 60 months | Learn more |
| Magical Credit Payday Loans | up to $20,000 | 19.99% – 35% | 12 - 60 months | Learn more |
 Lenditt Payday Loan | $250 - $1,500 | $14 per $100 | Up to 62 days | Learn more |
 Wagepay Payday Loan | $100 – $1500 | $8 per $100 + 24% | Up to 62 days | Learn more |
 Mr. Payday Payday Loan | $100 – $1,500 | $14 per $100 | 14 – 31 days | Learn more |
 My Canada Payday Payday Loan | Up to $1,500 | $14 per $100 | Next payday, or the one after | Learn more |
 Pay2Day Payday Loan | Up to $1,500 | $14 per $100 | Next payday, 42 days in Alberta | Learn more |
 Focus Financial Inc. Payday Loan | $100 – $1,500 | $14 per $100 | Next payday | Learn more |
 GoDay Payday Loan | $100 – $1,500 | $14 per $100 | Next pay date, 14 – 30 days | Learn more |
 Loan Express Payday Loan | up to $1,500 | $14 per $100 | 14 days | Learn more |
 North’n Loans Payday Loans | $100 – $1,500 | $14 per $100 | 14 – 90 days | Learn more |
 Instant Payday Canada Payday Loan | Up to $1,500 | $14 per $100 | Up to 30 days | Learn more |
| Lender | Loan amount | Rate | Term | Details |
|---|---|---|---|---|
| Spring Financial Spark Loan | $100 – $2,500 | 28.9% (about 29.9% APR with the $1 access fee) May decrease as you unlock higher loan amounts | 12 months | Learn more |
 Bree Cash Advance | Up to $750 | 0% | Up to 90 days | Learn more |
 Nyble Line Of Credit | $30 – $250 | 0% | Not listed | Learn more |
 KOHO Cash Advance | Up to $500 | 0% | Open-ended | Learn more |
| Lender | Loan amount | Rate | Term | Details |
|---|---|---|---|---|
 Canada Drives Car Loan | Up to $100,000 | 3.99% - 19.9% | 24 -96 months | Learn more |
 Clutch Car Loan | Varies | Varies | 24 – 96 months | Learn more |
 SafeLend Auto Loan Refinance | Min $10,000 | 6.93% – 19.99% | 18 – 96 months | Learn more |
| easyfinancial Car Loan | $500 – $150,000 | 9.99% – 34.95% | 9 - 240 months | Learn more |
| Fairstone Financial Car Loan | Up to $50,000 | Not listed | 6 – 60 months | Learn more |
 Car Loans Canada Car Loan | $5,000 – $65,000 | Up to 29.99% | 12 – 96 months | Learn more |
 Eden Park Car Loan | Not listed | Not listed | Not listed | Learn more |
 Wippy Repair Loan | $500 – $10,000 | Starting at 0% | 3 – 48 months | Learn more |
 Auto Credit Deals Car Loan | $5,000 – $75,000 | Not listed | 12 – 96 months | Learn more |
| LendCare Car Loan | Up to $50,000 | Not listed | Up to 60 months | Learn more |
| Helium Loans Auto Loan | $500 – $50,000 | Varies | 6 – 60 months | Learn more |
 Carloans411 Auto Loan | Not listed | Not listed | 12 – 84 months | Learn more |
 2nd Chance Automotive Car Loan | Not listed | Starting at 4.2% | Not listed | Learn more |
 Dixie Auto Loans Car Loan | Not listed | Not listed | Not listed | Learn more |
 Prefera Finance Recreational Vehicle Loan | Not listed | Not listed | Not listed | Learn more |
 Royal Bank of Canada (RBC) Auto Loan | Starting $7,500 | Not listed | 12 – 96 months | Learn more |
| Min $7,500 | Not listed | 12 – 96 months | Learn more | |
 Desjardins Auto Loan | $7,500 + | Not listed | 6 – 96 months | Learn more |
 Auto Capital Canada Car Loan | Not listed | Not listed | Not listed | Learn more |
 Canada Auto Finance Auto Loans | $5,000 – $45,000 | 4.90 % – 29.95% | Not listed | Learn more |
 Coast Capital Savings Car Loans | Not listed | Not listed | 24 – 84 months | Learn more |
 National Powersports Financing Vehicle Financing | Not listed | Not listed | Not listed | Learn more |
 Rifco Auto Loan | Not listed | Starting at 12.9% | Not listed | Learn more |
 National Bank Auto Loan | Not listed | Not listed | up to 96 months | Learn more |
 Scotiabank Auto Loan | Up to $1,000,000 | Not listed | Up to 15 years | Learn more |
 Credit River Capital Inc Auto Loan | Not listed | Not listed | Not listed | Learn more |
 DealerPlan Financial Auto Loans | Not listed | Not listed | Not listed | Learn more |
 iA Auto Finance Auto Loan | Not listed | Starting at 10.99% | Not listed | Learn more |
 Leisure Trailer Sales RV Trailer Loan | Not listed | Not listed | Not listed | Learn more |
 Loans2Go Auto Loan | Not listed | Not listed | Not listed | Learn more |
 LMG Finance Auto Loan | Not listed | Not listed | Not listed | Learn more |
 Toyloan Auto Loan | Not listed | Not listed | Not listed | Learn more |
 Auto Loan Solutions Car Loan | Not listed | Up to 29.5% | Not listed | Learn more |
 Go Auto Car Loans | Not listed | Not listed | 36 – 96 months | Learn more |
| Iceberg Finance Auto Financing | $1,000 – $35,000 | 12.99% – 29.99% | 12 – 84 months | Learn more |
 TD Bank Car Loan | Up to $50,000 | Not listed | Up to 96 months | Learn more |
 Fix4 Capital Car Repair Financing | $250 – $10,000 | Starting at 14.99% | 12 – 36 months | Learn more |
 Santander Car Loan | Not listed | Not listed | Up to 96 months | Learn more |
| Lender | Loan amount | Rate | Term | Details |
|---|---|---|---|---|
 Alpine Credits Home Equity Loan | $10,000 – $500,000 | Starting at 10% | Not listed | Learn more |
| Spring Financial Mortgages | Borrow up to 80% of your home's value | Rates shopped across 40+ banks and lenders Usually no broker fee; any fee is disclosed before you sign | Not listed | Learn more |
 nesto Mortgage Loans | Min $110,000 | 4.14% – 6.29% | 24– 120 months | Learn more |
 Frank Mortgage Mortgage Loans | $100,000 – $2,000,000 | Varies | 12 – 60 months | Learn more |
 Lotly Home Equity Loan | $5,000 + | 6% – 16% | 12 – 60 months | Learn more |
 Meridian Credit Union Mortgage | Not listed | 4.19% – 8.00% | 6 – 120 months | Learn more |
 Neo Mortgage Neo Mortgage™ | Not listed | From 3.60% | 6 – 60 months | Learn more |
| easyfinancial Secured Loan | $500 – $150,000 | 9.99% – 34.95% | 9 - 240 months | Learn more |
| Fairstone Financial Second Mortgage & Refinancing | Second mortgage: up to $300,000 | 14.99% – 20.25% | 12 – 60 months Amortization up to 25 years (second mortgage) or 30 years (refinancing) | Learn more |
| Fairstone Financial Secured Loan | $5,000 – $60,000† | 19.99% – 25.99%* | 36 – 120 months | Learn more |
 Blue Pearl Mortgage Mortgage | Not listed | Not listed | Not listed | Learn more |
 Capital Direct Home Equity Loan | $10,000 – $3,000,000 | Varies | 12 – 24 months | Learn more |
 Dominion Lending Center Mortgage | Not listed | Not listed | Not listed | Learn more |
 Manzil Mortgage | Not listed | Not listed | Not listed | Learn more |
 Mortgage Architects Mortgage | Not listed | 4.54% – 7.49% | 6 – 120 months | Learn more |
 Northwood Mortgage Mortgage | Not listed | 4.19% – 6.04% | 12 – 120 months | Learn more |
 Mortgage Alliance Mortgage | Not listed | 4.19% – 6.04% | 12 – 120 months | Learn more |
| Prudent Financial Services Home Equity Loan | Up to $500,000 | From 8.49% plus fees | Not listed | Learn more |
 First National Financial LP Residential Mortgage | Not listed | 4.49% – 6.63% | 1 – 10 years | Learn more |
 CanWise Mortgages | Not listed | 4.24% – 6.30% | 6 months – 10 years | Learn more |
 CHIP Reverse Mortgage Reverse Mortgage | Up to 55% of home value | Not listed | 12 – 60 months | Learn more |
 Equitable Bank Reverse Mortgage | Up to 59% of home value | Varies | Not listed | Learn more |
 Matrix Mortgage Global Mortgage | Not listed | Not listed | Not listed | Learn more |
 Think Financial Mortgage | Not listed | Not listed | Not listed | Learn more |
 Tangerine Mortgage | $50,000+ | Not listed | 12 – 120 months | Learn more |
 True North Mortgage Mortgage | $150,000 – $1,500,000 | 2.99% – 5.49% | 6 – 60 months | Learn more |
 Verico Mortgage | Not listed | Not listed | Not listed | Learn more |
 Peoples Bank Mortgages | Not listed | 4.50% – 5.97% | 12 – 60 months | Learn more |
 Mortgage Intelligence Mortgage | Not listed | Not listed | Not listed | Learn more |
| Provider | Services | Details |
|---|---|---|
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| Lender | Loan amount | Rate | Term | Details |
|---|---|---|---|---|
 SharpShooter Funding Business Loan | $1,000 – $300,000 | 5.49% – 22.79% | 12 – 120 months | Learn more |
 Merchant Growth Term Financing | $5,000 – $800,000 | Not listed | 6 – 24 months | Learn more |
 OnTap Capital Business Financing | $10,000 – $2,000,000 | 10%+ | Up to 36 months | Learn more |
 Primed Loans Business Financing | $10,000 – $20,000,000 | Not listed | Not listed | Learn more |
 Bizcap Working Capital | Up to 2 million | Not listed | Flexible | Learn more |
 Driven Business Loan | $10,000 – $300,000 | Not listed | 3 – 24 months | Learn more |
 Journey Capital Business Term Loan | $5,000 – $300,000 | 9% – 35% | Varies by product | Learn more |
 Lending Loop Small Business Loan | $ 1,000 – $500,000 | 4.96% – 24.93% | 1 – 60 months | Learn more |
 IOU Financial Term Loan | $15,000 – $1,500,000 | Not listed | 6 – 36 months | Learn more |
 iCommission Commission Advance | Up to $40,000 | $0.75 per $1,000 per day | Not listed | Learn more |
| Magical Credit Merchant Cash Advance | up to $20,000 | 19.99% – 35% | 12 - 60 months | Learn more |
| Helium Loans Business Term Loan | $500 – $50,000 | Varies | 6 – 60 months | Learn more |
 iCapital Commercial Loan | Up to $250,000 | Not listed | 3 – 24 months | Learn more |
 Canadian Equipment Finance Equipment Loan | $50,000 – $12,000,000 | Not listed | 24 – 96 months | Learn more |
 Easylease Corp Equipment Loan | Up to $5,000,000 | Not listed | 24 – 72 months | Learn more |
 Econolease Financial Services Inc. Equipment Leasing | $1,000 – $1,000,000 | 6% – 20% | Not listed | Learn more |
 FundThrough Invoice Financing | $500 – $50,000 | 2.75% – 8.25% | 12 week cycles | Learn more |
 Lease Link Working Capital Loan | Up to $250,000 | Not listed | Up to 48 months | Learn more |
 Money in Motion Equipment Loan | $10,000 – $1,000,000 | 4% – 14% | 12 – 84 months | Learn more |
 Money Line Capital Equipment Financing | $5,000+ | 4.9% – 24.99% | 18 – 48 months | Learn more |
| Royal Bank of Canada (RBC) Business Loan | Starting at $5,000 | Not listed | Up to 84 months | Learn more |
 Canadian Imperial Bank of Commerce (CIBC) Business Loan | Up to $1,000,000 | Not listed | Up to 15 years | Learn more |
| Desjardins Business Loan | Up to $100,000 | Not listed | Not listed | Learn more |
 DUCA Credit Union Business Loan | $5,000 – $250,000 | From Prime + 3.00% | 60 months | Learn more |
 PACE Credit Union Business Loan | Not listed | Not listed | Not listed | Learn more |
 BarterPay Barter Loan | BP 2,500 – BP 100,000 | Not listed | 6 – 60 months | Learn more |
| National Bank Business Loan | Up to $1,000,000 | Not listed | Not listed | Learn more |
 B2B Bank Investment Loan | $10,000 – $300,000 | Not listed | Not listed | Learn more |
 Bank of Montreal (BMO) Business Loan | Up to $500,000 | Not listed | Up to 15 years | Learn more |
 BDC Business Loan | Up to $100,000 | Not listed | 5 – 8 years | Learn more |
| Scotiabank Business Loan | Up to $1,000,000 | Not listed | Up to 15 years | Learn more |
 CanaCap Merchant Cash Advance | Up to $250,000 | Not listed | Not listed | Learn more |
 Laurentian Bank of Canada Business Loan | Up to $250,000 | Not listed | Up to 10 years | Learn more |
 Essex Lease Financial Corporation Equipment Loan | Not listed | Not listed | Not listed | Learn more |
 Export Development Canada Commercial Financing | Not listed | Not listed | Not listed | Learn more |
 Leaseline Equipment Leasing | Not listed | Not listed | 24 – 60 months | Learn more |
 Peel Financial Equipment Loans | Not listed | Not listed | Not listed | Learn more |
 Core Capital Group Inc Equipment Financing | Not listed | Not listed | Not listed | Learn more |
 Loop Business Line of Credit | Up to $1,000,000 | From 1.2% per month | Not listed | Learn more |
 Accelerated Payments Invoice Financing | Not listed | Not listed | Not listed | Learn more |
| TD Bank Business Loan | Not listed | Not listed | 12 – 60 months | Learn more |
 2M7 Financial Solutions Merchant Cash Advance | $1000 – $250,000 | Not listed | Not listed | Learn more |
 Advance Funds Network Business Term Loans | $10,000 - $1,000,000 | 12% + | 3 - 24 months | Learn more |
| Lender | Loan amount | Rate | Term | Details |
|---|---|---|---|---|
 BHM Financial Title Loan | Up to $50,000 | Not listed | Not listed | Learn more |
| Prudent Financial Services Equity Car Loan | Up to $50,000 | 19.99% – 34.99% | 6 – 48 months | Learn more |
Last updated: October 26, 2026
Unless you have a few hundred thousand dollars in cash, you’ll likely need to take out a mortgage to finance a home purchase in Ontario. Buying a home is a big deal and a huge financial investment. Thankfully, mortgages can help make your dreams of buying a home in Ontario a reality.
Here is everything you need to know about mortgages in Ontario before applying for one.
What To Expect When Getting A Mortgage?
Getting a mortgage involves the following key factors that you should understand before applying.
| Mortgage Amounts | Generally, you can borrow up to the home value minus the down payment. |
| Mortgage Terms | 6 months – 10 years |
| Mortgage Amortization | 15 – 30 years* |
| Mortgage Interest Rates | Interest rates available will be based on your financial profile and your mortgage terms, such as open or closed mortgage, fixed or variable rate, the prime rate, term length and amortization and other factors. |
| Types Of Mortgages | - Fixed-rate mortgages - Variable-rate mortgages - Hybrid mortgages - Open mortgages - Closed mortgages |
| Mortgage Lenders | - Banks - Credit Unions - Private lenders |
Learn more: Mortgages
What Do You Need To Get A Mortgage?
To get a mortgage in Ontario, you’ll need to meet specific criteria, including the following:
- Debt-To-Income Ratio: Your debt-to-income ratio is the percentage of your monthly income that goes toward paying your monthly debts. Ideally, it should be no more than 44% to get approved for a mortgage.
- Credit Score: In Ontario, the minimum credit score needed to secure a conventional mortgage from a traditional lender is 680, though this number may fluctuate slightly based on the lender, your income, and down payment amount.
- Down Payment: The minimum down payment needed to buy a home in Ontario is 5% of the purchase price. Down payments less than 20% will require mortgage default insurance.
- Stress Test: Canadians who apply for a mortgage with a federally regulated lender must pass the mortgage stress test to get a home loan. This test ensures that you can afford payments if interest rates increase in the future. Right now, the threshold to qualify is 5.25% or your contract rate plus 2%, whichever is higher.
Can You Get A Mortgage With Bad Credit?
Having bad credit will shrink your options when it comes to getting a mortgage in Ontario. However, it’s still possible.
Although your bank might not approve your mortgage application, there are other alternative lenders in Ontario who can. Many private lenders in Ontario deal specifically with bad credit borrowers and place more weight on other things that affect your ability to secure a mortgage, such as your income and down payment amount.
Not only do private mortgage lenders accept bad credit, but they may also be able to help you avoid the mortgage stress test. This is because they’re not federally regulated, which means they’re not bound by the rules set by the Office of the Superintendent of Financial Institutions (OSFI).
However, in exchange for this flexibility, private lenders typically charge higher interest rates to offset their risk. So, while you may be able to get a mortgage in Ontario with bad credit, you can expect to pay more for your loan.
| Pro tip: Work with a mortgage broker. If you have bad credit, a mortgage broker can connect you with lenders who specialize in bad credit, which can increase your chances of approval. They will also negotiate lower rates and better terms to get you the best deal. |
How Much House Can You Afford In Ontario?
Understanding how much you can borrow is a key step in determining what you can afford in a home purchase. While having a healthy income helps, lenders also factor in your existing debt to assess your borrowing capacity.
Two major metrics that lenders use to assess your affordability are your Gross Debt Service (GDS) ratio and Total Debt Service (TDS) ratio:
- Gross Debt Service Ratio (GDS): This metric measures the share of your gross income needed to cover housing expenses, like mortgage payments, property taxes, heating costs, and applicable condo fees. Ideally, your GDS should not exceed 39%.
- Total Debt Service Ratio (TDS): This metric includes everything in the GDS, plus other monthly obligations, such as car loans, credit card payments, and personal loans. It reflects your overall debts compared to your gross income. Your TDS should not be any higher than 44%.
Together, these ratios help lenders determine the size of mortgage you can handle without exhausting your finances.
Learn more: Mortgage Affordability
Find Out The Cost Of Other Mortgage Amounts
What’s The Average House Cost In Ontario?
The average price of homes in Ontario as of early 2026 is $778,102. That's much higher than the national average of $652,941.
That said, while Ontario may have higher average home prices compared to other provinces across the country, there are still some cities in the province that offer relatively affordable home prices. Here are the most affordable cities in Ontario for housing:
- Timmins: $304,435
- Sault Ste. Marie: $278,000
- Thunder Bay: $339,400
- Sudbury: $519,600
- Windsor: $575,500
- Ottawa: $615,400
What’s The Average Condo Cost In Ontario?
Condos offer home buyers a more affordable housing option compared to single-family homes. They also come with less maintenance and tend to offer several on-site amenities. That said, condominiums have monthly fees to help cover the cost of maintenance and repairs.
Currently, the average price of a condo in the GTA-wide is $652,945.
How To Apply For A Mortgage
To get a mortgage in Ontario, follow these steps:
Step 1: Get Pre-Approved
Getting pre-approved for a mortgage can give you a clear idea of how much you can afford in a home purchase, allowing you to focus on properties that fall within your price range. Mortgage pre-approval will also show sellers that you’re a serious and qualified buyer, which can be useful in a competitive market.
To get pre-approved, you’ll likely need to undergo a credit check. You’ll also need to provide the lender with information about your income and debts.
Step 2: Get Your Down Payment Ready
As mentioned, you’ll need to come up with at least 5% of the purchase price in the form of a down payment, depending on the price of the home. In Canada, down payment requirements are as follows:
| Home Price | Minimum Down Payment |
| Up to $500,000 inclusive | 5% |
| $500,000 – $1.5 million | - 5% of the first $500,000 - 10% for amounts over $500,000 |
| $1.5 million+ | 20% |
Learn more: Your Guide To Mortgage Down Payments In Canada
Step 3: Gather Your Documents
Documents needed to apply for a mortgage typically include the following:
- Personal Information Documents:
- Government-issued photo ID
- Social Insurance Number (SIN)
- Employment/Income Documents:
- Pay stubs
- Tax returns
- Notice of Assessment
- Financial Documents:
- Bank account information
- Statement of assets or investments
- Proof of down payment
Learn more: Mortgage Documents Checklist
Step 4: Get Final Approval
Once the seller agrees to your offer and all conditions are met, your lender will ask for your purchase agreement and may request additional documents to assess your financial profile, run a credit check, and arrange for a property appraisal.
You'll also need to come up with the home deposit funds, typically within 24 hours of offer acceptance. So, make sure that these funds are easily accessible and aren't tied up in illiquid accounts.
Step 5: Close The Deal
On closing day, you’ll finalize the purchase by signing important legal documents with your lawyer and settling closing costs, which typically range from around 1.5% to 4% of the home’s price. Once everything’s signed and paid, ownership will officially transfer to your name.
Learn more: How To Successfully Shop For A Mortgage
What Should You Consider When Getting A Mortgage?
Choosing the right mortgage involves more than just getting a loan - it’s about financial commitment and contributing to your financial future. Given this, it's important to consider several factors before applying.
Fixed Or Variable Rate
When applying for a mortgage, you'll have the option to choose between fixed or variable rates:
- Fixed-rate mortgages: This option offers predictable mortgage payments and protects you from increasing interest rates in the near future, making them ideal for long-term stability.
- Variable-rate mortgages: With this option, interest rates typically start lower, but may fluctuate with the prime rate. This can be a good thing if rates dip, which can save you money. But if they increase, you could be paying more in interest charges.
Open Vs. Closed
You may have the option to choose between open and closed mortgages, depending on your need for flexibility:
- Open mortgages: This option offers the flexibility to make extra payments or pay off your loan early without penalties. However, open mortgages usually come with higher interest rates.
- Closed mortgages: This is the more common option among Canadian homebuyers, and offers lower rates and fixed terms. However, prepayments are limited and fees are typically charged if you break the contract early.
Mortgage Term & Amortization
It's important to understand the difference between mortgage term and amortization, as they affect both your payments and long-term costs.
- Mortgage term: The term refers to the length of your current contract, typically 1 to 5 years. When the term expires, you'll need to either renew or pay off the mortgage.
- Amortization period: This refers to the total time it takes to pay off your mortgage, often 25 to 30 years. Longer amortization periods come with lower monthly payments, but higher interest costs.
Payment Options
Mortgages are a type of installment loan, which means you pay back the full loan amount in installments. You have a few options when it comes to how frequently your payments are made, including the following:
- Monthly
- Bi-weekly
- Accelerated bi-weekly
- Weekly
Prepayment Options
In addition to the regular payments you make on your mortgage, you may also have the option to make prepayments to help pay your mortgage down faster. Prepayment options may include the following:
- Lump-Sum Payments: One-time payments made directly toward your principal can help you pay your loan down faster.
- Increase Regular Payments: Boost your monthly payments by a set percentage to chip away at the principal.
- Accelerated Payment Frequency: Switch from monthly to bi-weekly or weekly payments, which adds an extra payment each year.
- Double-Up Payments: Some lenders may allow you to double your regular payment once a year without penalty.
Be sure to check your loan contract to see what prepayment privileges are available to you and if any penalties apply before making extra payments.
Learn more: How To Pay Off Your Mortgage Early In Canada
Newcomers
Newcomers to Canada may have a tougher time accessing financing for a home purchase due to the fact that they must typically start from scratch when it comes to building a credit profile. Credit scores play a key role in mortgage approval, which can put newcomers at a disadvantage.
Fortunately, mortgage solutions are available for newcomers, offering customized financing options that are designed with this demographic in mind. Big banks in Canada offer newcomer mortgage programs designed to ease the transition into homeownership.
Costs To Budget For When Buying A House
Given the high cost of a mortgage, it’s crucial to consider all applicable expenses involved with this type of financing:
Closing Costs
Closing costs in Ontario can cost anywhere from 1.5% to 4% of the purchase price. These fees are often paid at closing in one lump sum on closing day, so you'll need to budget for these extra costs before making an offer on a home. Closing costs can include several items, including:
- Home appraisals
- Home inspections
- Lawyer fees
- Title search
- Insurance fees
- Adjustments
- Property surveys
Ontario Land Transfer Tax
Buyers in Ontario must pay a provincial land transfer tax, which is based on the property value. Land transfer tax rates range from 0.5% to 2.5%, with an additional luxury home tax applied to homes valued over $3 million. Plus, homes in Toronto are subject to an additional municipal land transfer tax.
Luckily, a land transfer tax rebate of up to $4,000 is available to first-time homebuyers in Ontario, and a municipal land transfer tax rebate in Toronto of up to $4,725.
Non-Resident Speculation Tax
A 25% tax applies to foreign buyers who purchase properties within the Golden Horseshoe area of Southern Ontario. The purpose of this Non-Resident Speculation Tax is to prevent housing prices in Ontario from over-inflating due to foreign investment.
Property Tax
Property taxes are annual fees paid by homeowners to their local municipality in Ontario, based on the assessed value of their property and the local tax rate. These taxes cover essential public services, such as schools, waste management, road maintenance, and emergency services.
Learn more: Property Tax Sales In Ontario: How To Buy A Home For Cheap
Condo Fees
Condo fees are monthly payments that condo owners must pay in addition to their mortgage payments. These fees cover shared building expenses, such as maintenance, insurance, and on-site amenities.
Condo fees can vary quite a bit, depending on location, unit size, and amenities.
Learn more: The Costs Of Owning A Home In Ontario
Things To Watch Out For When Buying A House In Ontario
Besides the costs of buying a home and taking out a mortgage in Ontario, it’s also important for homebuyers to consider other potential costs and red flags, including the following:
Water Heater Rental
In Ontario, water heater rentals are very common and are generally included in the purchase of a home, and may actually be under a rental agreement. That means you'll need to make monthly rental payments, often for many years. This can often cost more than owning it outright. Moreover, the water heater rental company may even increase their rates along the way. Since this option is buried deep in the contract, many homeowners end up feeling misled.
In this case, it may be worth it to consider buying out the heater. Owning it outright can make more financial sense, depending on the heater’s cost and the length of the agreement.
Mortgage Prepayment Penalties
Lenders may charge a prepayment penalty if you break your loan agreement early, pay more than your contract allows, or even refinance before the term ends. This fee can be calculated in one of two ways:
- Three months’ interest on your remaining principal
- Interest Rate Differential (IRD), which is the difference between your mortgage rate and the current posted rate
Dishonest Real Estate Agents
Real estate agents charge buyers a commission for their services, which can be anywhere from 3% to 7% of the purchase price. However, while agents are supposed to provide a fiduciary duty to their clients, some agents don't act in good faith. This can cause serious financial issues, including:
- Misrepresenting property details
- Failing to disclose conflicts of interest, like dual agency
- Withholding offers
- Neglecting legal duties, such as mishandling deposits
- Providing false or misleading advice during negotiations
Need Financial Help Buying A House In Ontario? Check Out These Programs
Considering the sky-high cost of housing in Ontario, many homebuyer hopefuls may be unable to make the financial leap on their own. Thankfully, several financial assistance programs may be available, spending on their eligibility.
RRSP Home Buyers' Plan
The Home Buyers' Plan (HBP) is provided by the federal government and lets eligible Canadians use up to $60,000 from their RRSP tax-free to help buy their first home. Normally, RRSP withdrawals are taxed as income. But under the HBP, it’s treated like an interest-free loan from yourself.
To qualify for this program, you must have a qualifying RRSP and funds saved, and you’ll repay the amount back to your RRSP over 15 years.
Multigenerational Home Renovation Tax Credit
The Multigenerational Home Renovation Tax Credit provides financial support for the construction of a secondary suite for seniors or adults with disabilities. Eligible homeowners can claim a 15% tax credit up to $50,000 for work done on their homes, which provides up to $7,500 in credits.
Down Payment Assistance Programs
Several down payment assistance programs are available in different provinces and cities across Canada. Here are a few to check out in Ontario:
| Location | Program Name | Description |
| Kitchener (Waterloo Region) | Affordable Home Ownership Program | Offers eligible buyers a loan covering 5% of their down payment. |
| Lambton County | Homeownership Down Payment Assistance | Provides financial support to eligible households through a one-time, 20-year forgivable loan to cover a 10% down payment for the purchase of a new or resale home up to $325,000. |
| Leeds & Grenville Counties | Homeownership Program | Provides an interest-free loan that may be forgiven after 20 years. |
| Lanark County | Homeownership Program | Provides eligible first-time home buyers with up to 8% down payment assistance for a home price of up to $468,243. |
| Simcoe County | Investment in Affordable Housing Program | Provides eligible home buyers with up to 10% down payment assistance (maximum $50,000) for a home price of up to $712,300. |
Ready to Apply For a Mortgage in Ontario?
Before you apply for a mortgage in Ontario, it’s important to get familiar with what they are and what they entail. You’ll also want to take a close look at your finances and make sure you’re ready to pay a mortgage and become a homeowner in Ontario. If you’ve determined that you’re ready, let Loans Canada help you find a mortgage specialist who can help.
FAQs
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Note: Loans Canada does not arrange or underwrite mortgages, we are a comparison and simple referral platform.
