FAQ Library

Down payment rules are federal across Canada. Homes up to $500,000 require at least 5%. From $500,000 to $1.5 million, the minimum is 5% on the first $500,000 plus 10% on the remaining amount. Homes at $1.5 million or more generally require at least 20% down.

Pre-approval starts with reviewing your income, debts, credit, down payment, and documents. A broker can estimate your budget, compare lender options, and explain what needs to happen before you make an offer.

Not automatically. Your bank renewal offer may be convenient, but it is worth comparing rates, terms, penalties, prepayment privileges, and lender flexibility before signing.

Yes, many self-employed borrowers can qualify. The right path depends on income reporting, business history, credit, down payment, and available documents.

Sometimes. Approval depends on your credit history, income, down payment, debts, property type, and how recently the credit issues happened.

A decline from one bank does not mean every lender will decline the file. A broker can review why it was declined and look for a lender, structure, or plan that better fits.

Possibly. Refinancing can combine higher-interest debts into the mortgage, but penalties, fees, equity, qualification, and long-term interest cost should be reviewed carefully.

Affordability depends on income, debts, down payment, credit, property costs, interest rate, and lender stress-test rules. A calculator helps, but lender qualification rules decide the real number.

Common documents include photo ID, income proof, pay stubs, employment letter, tax documents if needed, down payment proof, and details about debts or assets.

Not always. Many owner-occupied purchases can be made with less than 20% down if the file qualifies, but mortgage default insurance is usually required under 20%.

Many lenders allow gifted down payment from eligible family members. They usually require a signed gift letter and proof the funds were received.

It depends on your risk tolerance, budget, plans, and market outlook. Fixed rates offer payment stability, while variable rates may change when lender prime rates change.

Start several months before maturity. This gives time to compare rates, review switch options, gather documents if needed, and avoid rushed decisions.

Yes, if the numbers work. Lenders review down payment, rental income, personal income, debts, credit, property type, and cash flow.

Common closing costs include legal fees, title insurance, property tax adjustments, inspection costs, appraisal fees if required, moving costs, and insurance-related costs.

The best fit is a broker who explains the numbers clearly, compares lender options, responds quickly, and helps you understand down payment, closing costs, pre-approval, and conditions before you shop.

Look for local experience, clear communication, lender access, strong reviews, and someone who can explain your approval path before you make an offer.

Yes. A broker can help with pre-approval, lender comparison, document review, purchase deadlines, conditions, and closing coordination.

Many brokers work with a range of banks, credit unions, monoline lenders, alternative lenders, and private lending options depending on the file.

Yes. Pre-approval before shopping helps set a realistic budget and can make your offer process less stressful.

Know your budget, down payment source, financing condition timeline, property tax estimate, closing costs, and whether the property itself is likely to meet lender rules.

Yes. Jot works with clients in Edmonton and across Alberta, depending on the mortgage need and lender availability.

For eligible owner-occupied homes priced up to $500,000, the minimum down payment can be 5%. Higher prices require more, and mortgage default insurance usually applies below 20% down.

The minimum down payment for a $500,000 home is generally 5%, or $25,000, if the file qualifies for insured financing.

From $500,000 to $1.5 million, the minimum is 5% on the first $500,000 plus 10% on the portion above $500,000.

If your down payment is under 20%, mortgage default insurance is usually required. The premium is often added to the mortgage.

Some buyers can use eligible RRSP Home Buyers Plan funds or FHSA savings if they meet program rules. The withdrawal timing and paperwork matter.

Keep a buffer for closing costs, moving, utilities, inspections, insurance, furniture, and emergency savings. Lenders may also want to see available funds.

Sometimes, but lender rules vary. Borrowed down payment can affect debt ratios, approval strength, and insurance requirements.

No. Final approval still depends on lender review, the property, appraisal if needed, income documents, down payment proof, credit, and conditions.

Simple files can often be reviewed quickly once documents are available. Complex files may take longer if income, credit, or down payment need extra review.

A full pre-approval may involve a credit check. One proper mortgage credit check is usually better than multiple scattered applications.

Possibly. Existing monthly debts affect qualification, so the balance, payment amount, income, and other obligations all matter.

You can, but it is risky. Pre-approval helps you understand budget and conditions before committing to a purchase contract.

A calculator estimates payment only. Lenders also review stress-test rules, debts, income documents, property costs, credit, and mortgage insurance.

Avoid new debt, job changes without advice, missed payments, large undocumented deposits, and moving down payment funds without records.

A fixed rate stays the same for the term. A variable rate can change when lender prime rates change, which may affect payment or interest cost.

Not always. Penalties, restrictions, portability, prepayment privileges, and lender flexibility can matter as much as the rate.

The term is the length of your current mortgage contract, such as 1, 3, or 5 years. At the end, you renew, switch, refinance, or pay it out.

Amortization is the total time used to calculate mortgage repayment, often 25 or 30 years depending on mortgage type and eligibility.

Many mortgages allow extra payments, increased payments, or lump-sum prepayments. The exact limits depend on the lender and product.

Monthly, biweekly, and accelerated options can all work. Accelerated payments may reduce interest over time, but cash flow matters.

Many lenders allow payment date changes, but the rules depend on the lender and mortgage setup.

Yes, many borrowers switch lenders at renewal. The new lender may still review income, credit, property details, and documents.

Sometimes. Even if the bank improves its offer, it is still worth comparing the full mortgage terms against other lender options.

Your lender may move the mortgage into an open or short-term renewal option. It is better to review options before maturity.

The right choice depends on your risk tolerance, cash flow, plans, and how much payment certainty you want.

Yes. Renewal is a common time to review refinancing because penalties may be lower or avoided at maturity.

If you stay with your current lender, maybe not. If switching lenders or refinancing, documents are usually required.

Sometimes. Changing amortization may require lender approval and qualification, especially if extending the repayment period.

Common documents include tax returns, notices of assessment, financial statements, business license or registration, bank statements, and corporate documents if applicable.

It may be possible, but it can be harder. Some lenders consider add-backs, business strength, bank statements, or alternative programs where appropriate.

Some lenders may review business or personal bank statements for certain self-employed files, but policies vary.

Yes, contractors can qualify if income, documentation, credit, and down payment support the application.

Possibly. Lenders may review corporate financials, personal income, retained earnings, shareholder income, and the overall business structure.

Common reasons include low reported income, inconsistent documents, high debts, limited history, credit concerns, or the bank not using the right income approach.

Sometimes. Lenders usually prefer established income history, but the right option depends on down payment, credit, industry, and documents.

There is no single score that guarantees approval. Stronger credit usually improves lender options, but income, debts, down payment, and property also matter.

Possibly, depending on proposal status, rebuilt credit, down payment, income, time passed, and lender rules.

Possibly, depending on discharge status, rebuilt credit, income, down payment, time passed, and lender guidelines.

Pay bills on time, reduce high-interest debt, avoid new credit applications, keep documents organized, and confirm down payment source early.

Private lending may help in some cases, but it is usually more expensive and should have a clear short-term exit strategy.

Sometimes. Lenders look at the type, amount, age, payment history, explanation, and whether the collections have been resolved.

No. Multiple rushed applications can create more credit checks and confusion. It is better to review the file and choose a targeted lender strategy.

It depends on savings, penalties, fees, new rate, cash flow, debt payoff, and long-term interest cost. The full picture matters.

If you break your mortgage before maturity, a penalty may apply. The amount depends on lender, contract, rate type, and timing.

Possibly. Using home equity can reduce monthly interest costs, but it also moves unsecured debt into your mortgage, so discipline and total cost matter.

Equity requirements depend on property value, mortgage balance, lender rules, and the purpose of the refinance.

Yes, if there is enough equity and the file qualifies. The lender may require an appraisal and details about the renovation plan.

It can be useful when it reduces interest and improves cash flow, but it should be reviewed carefully so short-term relief does not become long-term cost.

Possibly. The lender will review current income, debts, credit, equity, and whether the new mortgage is affordable under its rules.

Often, yes. Rental and investment properties may need more down payment than owner-occupied purchases, depending on lender and insurance rules.

Yes, lenders may use rental income, but each lender treats it differently. Lease agreements, market rent, or tax documents may be required.

Possibly. Lenders may consider legal suite income, market rent, or existing leases depending on the property and lender policy.

Yes, but construction financing is more detailed. Lenders review plans, permits, builder contracts, budgets, draw schedules, income, and down payment.

Commercial mortgages are possible, but they usually require stronger documentation, property analysis, business financials, appraisals, and longer timelines.

Private lending is usually short-term financing outside traditional lender rules. It can help with timing, credit, or income issues, but costs are typically higher.

Possibly. Lenders review the purpose of the property, down payment, income, debts, credit, and whether it will be owner-occupied or rented.