Please reach us at cdg@godfreymortgage.com if you cannot find an answer to your question.
Short answer: Because Ontario mortgage approvals are based on market value, not offer price.
In neighbourhoods like Leslieville, competitive bidding often pushes prices above recent comparable sales. Lenders rely on conservative appraisals using closed sales—not emotions or offer nights. If the appraisal comes in low, the lender will base your mortgage on the lower of purchase price or appraised value, meaning you’ll need extra cash to close or a price adjustment.
Yes—older homes mean closer scrutiny, not automatic rejection.
In Riverdale, lenders may flag knob-and-tube wiring, aging plumbing, or outdated electrical panels. These don’t usually kill a deal, but they can trigger holdbacks, repair conditions, or insurer concerns. The key is identifying issues before conditions are waived.
Most lenders will only use 50–80% of verified rental income.
Even if the unit rents easily in Toronto, lenders apply discounts to account for vacancies and expenses. Legal status, separate entrances, and lease documentation all matter. Overestimating rental income is a common first-time buyer mistake.
Yes. Future obligations still count.
If your student loans resume mid-2026, lenders will include a payment assumption—even if your credit report is quiet. Mortgage underwriting looks forward, not backward.
They are—especially when it comes to condo fees.
A condo in The Beach with high monthly fees can significantly reduce your borrowing power. Lenders treat fees like debt, even if the unit price looks affordable.
They are—especially when it comes to condo fees.
A condo in The Beach with high monthly fees can significantly reduce your borrowing power. Lenders treat fees like debt, even if the unit price looks affordable.
Yes—and when done properly, it’s powerful.
The First Home Savings Account (FHSA) and RRSP Home Buyers’ Plan can be combined, but timing, contribution history, and withdrawal rules matter. Missteps can cause delays or tax issues.
Because brokers access more lenders and policies.
Banks use one rulebook. Brokers compare dozens—including credit unions and monoline lenders—often resulting in higher approvals without higher rates.
More than most buyers expect.
In Toronto, a $900 fee can reduce your maximum mortgage by $120,000–$160,000, depending on income and rates. This is one of the biggest silent deal-killers for first-time condo buyers.
Possibly, but expect limitations.
Most lenders want two full years of business income, even if revenue is strong. There are exceptions, but they require clean financials and proper structuring.
Sometimes—but far less than before.
Noise, vibration, and resale concerns can still impact valuation, but proximity to transit often offsets these risks in Toronto’s east end.
At minimum, the difference between appraised value and purchase price.
This must be cash—not borrowed funds. Planning for this scenario before bidding is critical in competitive markets.
Not if it’s part of a strategy.
Many first-time buyers use alternative lenders temporarily and refinance into banks later. The key is structuring the mortgage with an exit plan, not fear.
They’re not risky—they’re conditional.
Variable rates now behave differently than pre-2022. Understanding trigger rates, payment adjustments, and risk tolerance matters more than chasing headlines.
To confirm the funds are legitimate and non-repayable.
This is an anti–money laundering requirement, not a judgment call. It protects both you and the lender.
Sometimes—but cautiously.
Many lenders won’t include income from suites that aren’t built yet. Existing, legal suites with leases have better odds, but expectations should be conservative.
Because property-specific risk matters.
Pre-approvals are general. Once a real address is involved, lenders assess taxes, fees, age, and marketability—which can change the numbers.
Yes—especially if the tenant is protected under Ontario law.
Some lenders avoid tenanted properties due to eviction risk. This can affect rates, approval speed, and lender choice.
Potentially tens of thousands over a 5-year term.
The difference between prime and near-prime pricing compounds quickly. Improving credit before buying is one of the highest-ROI moves a first-time buyer can make.
Approval is conditional. Underwriting is final.
Only fully underwritten mortgages survive appraisal issues, income verification, and insurer scrutiny. This distinction matters most in competitive offer situations.
We use cookies to analyze website traffic and optimize your website experience. By accepting our use of cookies, your data will be aggregated with all other user data.