Mortgage Broker

Courtier hypothécaire

Find the mortgage you are looking for with Melissa Harney, Mortgage Intelligence in Ontario. Languages: English

Melissa Harney, Mortgage Professional, part of the Mortgage Intelligence in Ontario

Trouvez l'hypothèque que vous recherchez avec Melissa Harney, Intelligence Hypothécaire en Ontario. Langues : Anglais 

Melissa Harney, Courtier hypothécaire, faisant partie de Intelligence Hypothécaire en Ontario

<img src="https://brokerwebsitesimage.azureedge.net/m3brokerimages1/next/brokerAdmin/33133/dddb49c6-0262-495e-8139-698d13ffd317image.jpg" alt="First Time Home Buyer Canada" width="inherit" height="inherit" class="editor_image">Q: What qualifies me as a first-time home buyer in Canada?In Canada, you are considered a first-time home buyer if you have never owned a home before, or if you have not occupied a home that you or your current spouse or common-law partner owned at any point in the last four calendar years. This definition matters because it determines whether you qualify for several government programs designed to make homeownership more accessible.If you previously owned a home but sold it and have been renting for more than four years, you may qualify again. Each situation is slightly different, which is why it is worth reviewing your eligibility before assuming you do not qualify. As a mortgage broker with 16 years of experience helping Ontario buyers, I have helped many clients access first-time buyer programs they did not realize they were entitled to. Q: How much do I need for a down payment as a first-time buyer in Ontario?The minimum down payment in Canada is based on the purchase price of the home. For homes priced at $500,000 or less, the minimum is 5%. For homes priced between $500,000 and $999,999, you need 5% on the first $500,000 and 10% on the remaining balance. For homes priced at $1,000,000 or more, the minimum down payment is 20%.In the Ontario market, especially in the Greater Toronto Area and surrounding regions, many buyers are purchasing in the $700,000 to $900,000 range. That means you are likely looking at a down payment somewhere between $45,000 and $70,000 before factoring in closing costs. Closing costs in Ontario typically add another 1.5% to 4% of the purchase price, covering items such as land transfer tax, legal fees, home inspection, title insurance, and moving expenses.First-time buyers in Ontario may be eligible for a refund on provincial land transfer tax up to $4,000, and if purchasing in Toronto, a partial rebate on the municipal land transfer tax as well. These rebates can meaningfully reduce your upfront cash requirements. Q: What government programs are available to help first-time buyers in Canada?There are several programs worth knowing about. The First Home Savings Account (FHSA) allows eligible Canadians to contribute up to $8,000 per year, to a lifetime maximum of $40,000. Contributions are tax-deductible and qualifying withdrawals are tax-free when used toward a first home purchase. If you have not opened one yet, you should, even if you are still saving and not ready to buy immediately.The Home Buyers' Plan (HBP) allows you to withdraw up to $60,000 from your RRSP tax-free to use toward the purchase of your first home. If purchasing with a partner, both of you can withdraw, bringing the combined amount to up to $120,000. You have up to 15 years to repay the amount back into your RRSP.The First-Time Home Buyer Incentive was a shared equity program offered by the federal government that has since ended, but other provincial and municipal programs continue to evolve. The key is speaking with a mortgage broker who stays current on what is available, because these programs can change, and the timing of how you use them relative to your mortgage application matters. Q: What does mortgage default insurance mean, and will I need it?If your down payment is less than 20% of the purchase price, your mortgage is considered a high-ratio mortgage, and you are required by law in Canada to purchase mortgage default insurance. This insurance is provided through CMHC, Sagen, or Canada Guaranty, and it protects the lender, not you, in the event of default.The premium is calculated as a percentage of your mortgage amount and depends on your down payment size. With 5% down the premium is 4.00%. With 10% down it drops to 3.10%, and with 15% down it is 2.80%. The premium is added to your mortgage balance, so you are paying it off over the life of the loan rather than out of pocket upfront. You will also pay provincial sales tax on the premium at closing, which in Ontario is 8% and must be paid in cash.While no one loves paying insurance, high-ratio mortgages often come with slightly lower interest rates because lenders see them as lower risk. The insurance premium is not always a pure cost when you factor in the rate differential over time. Q: What does my credit score need to be to qualify for a mortgage in Ontario?For insured mortgages, which is what most first-time buyers are using, many A lenders will approve applications with a credit score as low as 600 per applicant. This is lower than most people assume. That said, the stronger your score, the more product options and better rates become available to you. For insurable promotional rates, most lenders require at least one applicant to have a minimum score of 680. For conventional uninsured mortgages, the typical minimum is 650 for the primary applicant on a purchase, and 650 across all applicants on a refinance.Credit score is one factor among many. Lenders also assess your income, employment stability, existing debt levels, and the property itself. A borrower with a 620 score and a clean financial picture overall is often a stronger application than someone with a 680 score carrying significant consumer debt.If your score is below 600, you are not automatically out of options. B lenders and alternative lenders work with scores below that threshold, though their rates are higher. If your score is below 550, private lending may be a short-term bridge while you rebuild. The path to homeownership is rarely just about waiting until your score hits a magic number — it is about structuring the right application for where you are right now. <a href="https://" rel="noopener" class="editor_link">Q: How do I get pre-approved and what does it actually mean?</a>A mortgage pre-approval is a written confirmation from a lender that they are willing to lend you up to a specific amount based on your current financial situation. It involves a full review of your income, employment, credit, assets, and liabilities. It is not a guarantee of final approval, because the lender still needs to approve the specific property you choose, but it is far more meaningful than a pre-qualification, which is just a rough estimate based on information you provide without verification.Having a pre-approval in hand before you begin making offers gives you a clear budget, shows sellers you are a serious buyer, and often locks in a rate for 90 to 120 days depending on the lender. In a competitive market, that rate hold alone can save you thousands if rates move upward before you close.Book a call with me and we can review your situation, determine what you qualify for, and start the pre-approval process so you are ready to move when the right property comes up.

Q: What qualifies me as a first-time home buyer in Canada? In Canada, you are considered a first-time home buyer if you have never owned a home before

Down payments, CMHC insurance, FHSA, and pre-approvals explained. I help Ontario first-time buyers qualify and close with confidence.

First-Time Home Buyer Mortgages

<img src="https://brokerwebsitesimage.azureedge.net/m3brokerimages1/next/brokerAdmin/33133/f4d4034b-5956-4dd9-a6ef-b62656777261image.jpg" alt="Mortgage Pre Approval Canada- Melissa Harney Mortgage Broker" width="inherit" height="inherit" class="editor_image"> Q: What is the difference between a pre-qualification and a pre-approval?These two terms get used interchangeably but they are not the same thing, and the difference matters when you are making offers on a home.A pre-qualification is a quick estimate of how much you might be able to borrow based on information you provide, usually income and estimated debts, without any verification. It takes minutes and gives you a rough number. Sellers and agents know it means very little.A pre-approval is a detailed review where a lender actually verifies your income documents, runs your credit, reviews your employment history, and assesses your overall financial profile. The result is a written commitment to lend up to a specific amount at a specific rate, usually held for 90 to 120 days. This is what you want before you start making offers in the Ontario market. It gives you real confidence in your budget, and it signals to sellers that you are a qualified, serious buyer. Q: What documents do I need to get pre-approved?The document requirements vary depending on whether you are salaried, self-employed, or earning variable income, but generally you should be prepared to provide the following.For employment income: recent pay stubs covering the last 30 days, your last two years of T4 slips, a letter of employment confirming your position, salary, and whether your employment is permanent or contract-based.For self-employed income: your last two years of personal Notice of Assessments, your last two years of T1 generals, and potentially your business financials or articles of incorporation.In addition to income documents, you will need two pieces of government-issued identification, three to six months of bank statements showing your down payment funds, and if any of your down payment is a gift, a gift letter from the donor confirming the money does not need to be repaid.I gather this information efficiently and walk you through exactly what is needed so nothing is missed and the process moves quickly. Q: How long does a mortgage pre-approval last?Most lenders hold a pre-approval rate for 90 to 120 days from the date of approval. This means that if rates rise during your home search, you are protected at the rate that was locked in when you were approved. If rates drop before you close, you may be able to take the lower rate depending on the lender.If your pre-approval expires before you find a home, it can usually be renewed, though your documents will need to be refreshed. If your financial situation has changed significantly, the renewal may result in a different approval amount or rate.The rate hold is one of the underrated benefits of getting pre-approved early. In a rising rate environment, locking in a rate while you search can mean the difference of hundreds of dollars per month in your payment. Q: Will getting pre-approved hurt my credit score?When a lender pulls your credit for a pre-approval, it registers as a hard inquiry on your credit file, which can temporarily lower your score by a small amount, typically five points or fewer. This is normal and expected.Here is what most people do not know: if multiple mortgage lenders pull your credit within a 14 to 45 day window, credit bureaus typically treat these as a single inquiry for scoring purposes, because they recognize you are rate shopping for the same type of debt. So having a mortgage broker submit your application to one or two lenders within that window will not compound the impact.What does hurt your credit more meaningfully is applying for new credit cards, car loans, or other debt while you are in the process of buying a home. Avoid opening any new credit accounts from the time you start your mortgage search until after you close. Q: Can I get pre-approved with variable income, contract employment, or a probationary period?Yes, though the qualification process is more nuanced. Variable income such as commissions, bonuses, tips, or overtime can usually be used if it is documented over two years and appears on your T4 or Notice of Assessment. Lenders typically average the income over two years rather than using the most recent year alone.Contract employment is increasingly common in Ontario's workforce and many lenders will accept it, particularly if you are working in the same field, have a history of continuous contracts, and your current contract has a reasonable term remaining.Probationary employment is the trickiest. Some lenders require that your probation period be completed before funding, while others will approve with conditions. If you are in a probationary role and looking to buy, the lender and timing of your application matter, and this is exactly the kind of situation where having a broker who knows multiple lenders makes a real difference. <a href="https://" rel="noopener" class="editor_link">Q: Why should I use a mortgage broker for my pre-approval instead of going directly to my bank?</a>When you go directly to one bank, you get one opinion and one set of products. That bank will qualify you based on their own lending criteria and offer you their rates. If you do not fit their box, or if their rates are not competitive, you will not know unless you go elsewhere on your own.Working with me means your application is assessed across multiple lenders simultaneously. I have access to major banks, credit unions, monoline lenders, and alternative lenders. I know which lenders are most competitive for your specific situation, whether you are salaried, self-employed, an investor, or dealing with credit challenges.Beyond access, I also structure your application. How your income is presented, which debts are disclosed, and which lender program matches your situation can meaningfully affect both whether you qualify and what rate you are offered. Getting pre-approved through a broker at no cost to you is one of the best ways to make sure you are starting from the strongest possible position.

Q: What is the difference between a pre-qualification and a pre-approval? These two terms get used interchangeably but they are not the same thing, an

Mortgage Pre-Approvals

Many homeowners simply renew with their bank without exploring other options. Before you renew, I can compare rates and mortgage products from multiple lenders to make sure you're getting the best solution for your situation.

Many homeowners simply renew with their bank without exploring other options. Before you renew, I can compare rates and mortgage products from multipl

Mortgage Renewals

Refinancing your mortgage can allow you to access equity, reduce monthly payments, or restructure your mortgage. I help clients explore refinancing options that align with their financial goals.

Refinancing your mortgage can allow you to access equity, reduce monthly payments, or restructure your mortgage. I help clients explore refinancing op

Mortgage Refinancing

Financing an investment property requires a different approach than a traditional home purchase. I help real estate investors explore mortgage options designed for rental and income properties.

Financing an investment property requires a different approach than a traditional home purchase. I help real estate investors explore mortgage options

Investment Property Mortgages

Self-employed borrowers often face additional challenges when qualifying for a mortgage. I work with lenders who understand business income and offer solutions tailored for entrepreneurs and self-employed professionals.

Self-employed borrowers often face additional challenges when qualifying for a mortgage. I work with lenders who understand business income and offer 

Self-Employed Mortgages

<img src="https://brokerwebsitesimage.azureedge.net/m3brokerimages1/next/brokerAdmin/33133/b16340bd-917b-4e52-afe7-78d7b092f2d4image.jpg" alt="When banks say no, private lending may be the bridge you need. I connect Ontario borrowers with private lenders for fast, flexible financing" width="inherit" height="inherit" class="editor_image"> Q: What is a private mortgage and how does it work?A private mortgage is a loan secured against your home that is funded by a private individual or mortgage investment corporation rather than a bank. Private lenders are far more flexible than institutional lenders because they base their decision primarily on the equity in your property rather than your income or credit score.Private mortgages are short-term solutions, typically one to two years. The goal is to use the private mortgage to bridge a gap, stabilize your situation, or complete a transaction — then transition to a conventional lender when circumstances improve.Q: Who typically needs a private mortgage ?Private mortgages serve situations where speed, flexibility, or non-traditional qualification is needed. Common scenarios include severely damaged credit, self-employed borrowers whose income does not document cleanly, homeowners needing to access equity quickly, borrowers going through separation or divorce, and situations involving power of sale where time is critical.If a conventional or B lender cannot help you, private lending may be the bridge you need.Q: What interest rates and fees should I expect?Private mortgage rates are significantly higher than institutional rates. There are also lender fees and legal costs for both parties involved. I always lay out the full cost picture before recommending a private solution so the decision is fully informed.Q: How much equity do I need?Most private lenders in Ontario will lend up to 75% to 80% of your property's appraised value in strong urban markets. The equity in your property is the most important factor — the more you have, the better your terms will be. Property location and type also matter, as lenders need confidence they can recover their funds if necessary.Q: How quickly can a private mortgage be arranged?Speed is one of the biggest advantages of private lending. Unlike institutional lenders with multi-week approval processes, private lenders can often approve and fund within 5 to 10 business days. In urgent situations it can move even faster. If you are in a time-sensitive situation, contact me as early as possible.Q: What is the exit strategy?Every private mortgage needs a clear exit plan before you enter into it. Because rates are higher and terms are short, staying longer than planned is costly. The most common exit strategies are improving your credit during the term, selling the property, completing a renovation that increases value, or resolving an income documentation issue.I work with clients on both the entry and the exit. Getting into a private mortgage without a realistic plan to get out is a mistake I help borrowers avoid.

Private Mortgages

Reverse mortgages allow homeowners aged 55 and older to access equity from their home without selling their property or making regular mortgage payments. This can provide financial flexibility during retirement.

Reverse mortgages allow homeowners aged 55 and older to access equity from their home without selling their property or making regular mortgage paymen

Reverse Mortgages

Not every borrower fits the strict guidelines of major banks. Alternative lenders provide mortgage solutions for clients with unique income situations or credit challenges.

Not every borrower fits the strict guidelines of major banks. Alternative lenders provide mortgage solutions for clients with unique income situations

Alternative / B Lender Mortgages

<img src="https://brokerwebsitesimage.azureedge.net/m3brokerimages1/next/brokerAdmin/33133/b2c91079-098a-4cc3-a03a-5f11a7cfe20eimage.jpg" alt="Bad Credit Mortgage Ontario | Solutions for Bruised Credit | Melissa Harney" width="inherit" height="inherit" class="editor_image"><h2 class="editor_h2" dir="ltr">Q: Can I get a mortgage in Ontario with bad credit?</h2>Yes, and this is one of the most important things to understand if you have been struggling with your credit. Bad credit does not automatically disqualify you from homeownership or from accessing your home's equity. It changes which lenders are available to you and what you will pay, but it does not close the door entirely.The Canadian mortgage market has multiple lender tiers specifically because not everyone fits the same mould. A lenders such as the major banks have strict credit requirements, but B lenders and private lenders exist precisely to serve borrowers who fall outside those requirements. The key is matching your situation to the right lender, structuring the application correctly, and having a realistic plan for where you want to be at the next renewal.I have been working with bruised credit borrowers for 16 years. It is one of my specialties and one of the areas where a knowledgeable broker makes the most meaningful difference, because placing a file with the wrong lender or missing a detail in the application can result in a decline that did not need to happen. Q: What qualifies as bad credit for a mortgage lender in Canada?Credit scores in Canada range from 300 to 900. Most major banks want to see a score of 650 or higher. If you are below that, you are not out of options — you just need a different lender.Alternative and B lenders are built specifically for borrowers who do not fit the bank mould. Some will work with scores as low as 500 to 550 depending on how much equity or down payment you have. There are even lenders with no minimum credit score requirement at all, as long as the property is solid and the numbers make sense.What matters as much as your score is the story behind it. A difficult period in the past that you have recovered from is very different from ongoing missed payments. Lenders who work in this space understand that, and part of my job is presenting your situation in the right way to the right lender.<a href="https://apply.mortgageboss.ca/MI/melissa-harney" rel="noopener" class="editor_link">If your bankruptcy has been discharged or you are looking to pay out a consumer proposal, there are mortgage options available to you. The path forward exists — it just needs to be structured correctly.</a><h2 class="editor_h2" dir="ltr">Q: Can I get a mortgage after a consumer proposal in Ontario?</h2>Yes. A consumer proposal is actually viewed more favourably than a bankruptcy by most lenders because it demonstrates that you made a good-faith effort to repay a portion of what you owed rather than walking away entirely.Most B lenders will consider a mortgage application while you are still in an active consumer proposal, provided you have been making your proposal payments on time and have demonstrated responsible credit behaviour since filing. The loan-to-value requirements will be more conservative, and the rate will be higher than conventional lending, but approval is possible.Once your consumer proposal is completed and discharged, and with two or more years of clean credit established, many borrowers can qualify for A lender products again. The timeline depends on how well you rebuild during and after the proposal period.If you are currently in a consumer proposal and want to understand your mortgage options, the conversation is worth having now rather than waiting until the proposal is complete. There may be options available to you sooner than you think.&nbsp;<h2 class="editor_h2" dir="ltr">Q: How long after a bankruptcy can I get a mortgage in Canada?</h2>The timeline depends on which type of lender you are working with. For A lenders, most require a minimum of two years from the date of discharge and a fully rebuilt credit profile with a score of at least 680. Some A lenders require longer.B lenders are more flexible. Many will consider a mortgage application as early as one day after discharge, provided there is sufficient equity, strong compensating factors, and evidence of financial recovery. The terms will not be as favourable as you would receive with a longer rebuild period, but if you need financing and have a viable property as collateral, options exist.The most important thing to do after a bankruptcy discharge is to begin rebuilding your credit immediately and deliberately. Secured credit cards, small instalment loans, and consistent on-time payment behaviour all contribute to rebuilding your score. Within two to three years of focused effort, many people who have gone through a bankruptcy are able to qualify for conventional financing again.I have helped many Ontario clients navigate the mortgage market at various stages post-bankruptcy. The path forward is real, and starting the conversation earlier gives you more time to plan strategically.&nbsp;<h2 class="editor_h2" dir="ltr">Q: Will I pay a higher interest rate because of my bad credit?</h2>Yes, and it is important to be honest about this rather than minimize it. Lenders price risk, and a borrower with a damaged credit history represents more risk than a borrower with a clean record. That risk is reflected in the rate.At a B lender, rates are typically one to two percentage points above A lender rates. There may also be lender fees at closing ranging from 0.5% to 1% of the mortgage amount. At a private lender, rates are higher still, often ranging from 8% to 12% or more depending on the situation and the property.The way to think about this is as a temporary cost rather than a permanent one. If your credit improves during your term and you qualify for A lender financing at renewal, you move to a lower rate at that point. The higher cost during the recovery period is the price of access to financing while you rebuild, and for many borrowers that access is worth it.I always show clients the full cost picture so they can make a decision with eyes open. Sometimes the math strongly favours proceeding even at a higher rate. Sometimes it makes more sense to wait and rebuild before buying. The right answer depends on your specific situation.&nbsp;<h2 class="editor_h2" dir="ltr">Q: What steps should I take right now to improve my mortgage options?</h2>If you have bad credit and want to improve your mortgage options, the most impactful steps you can take are straightforward even if they require discipline and time.First, pull your credit report from <a href="https://my.equifax.ca/login" rel="noopener" class="editor_link">Equifax</a> and TransUnion and review it carefully. Errors on credit reports are more common than most people realize, and disputing inaccurate negative items can improve your score meaningfully. You can access your credit reports for free through each bureau's website.Second, make every payment on time from this point forward. Payment history is the single largest factor in your credit score. Even one missed payment can set back months of progress. Set up automatic payments wherever possible.Third, reduce your credit utilization. If you are carrying balances close to your credit limits, paying those down will improve your score relatively quickly. Aim to keep balances below 30% of each card's limit.Fourth, avoid applying for new credit unless absolutely necessary. Each application results in a hard inquiry that temporarily lowers your score, and multiple applications signal financial stress to lenders.Fifth, contact me now even if you are not ready to buy or refinance today. Understanding where you currently stand and what your realistic timeline looks like gives you a roadmap. Many of my clients who came to me with bruised credit went on to qualify for conventional financing within one to two years because they had a clear plan from the start.&nbsp;&nbsp;

Bad credit doesn't mean no options. I work with Ontario borrowers after bankruptcy, consumer proposals, and late payments to find real mortgage soluti

Q: What qualifies as bad credit for a mortgage lender in Canada? Credit scores in Canada range from 300 to 900. Most major banks want to see a score o

Bad Credit Mortgages

<img src="https://brokerwebsitesimage.azureedge.net/m3brokerimages1/next/brokerAdmin/33133/ab8b4a7c-5e57-446a-9a75-e746cb88ca18image.jpg" alt="New to Canada Mortgages- Melissa Harney Mortgage Broker" width="inherit" height="inherit" class="editor_image"><h2 class="editor_h2" dir="ltr">Q: Can I get a mortgage in Canada if I am a newcomer or permanent resident?</h2>Yes. Canada has mortgage programs specifically designed for newcomers, permanent residents, and even some temporary residents who want to purchase property in Ontario. You do not need to have lived in Canada for years or have a long Canadian credit history to qualify. Lenders recognize that skilled immigrants and new permanent residents are often strong borrowers whose financial history simply does not show up in Canadian credit bureau records yet.The key is working with lenders who have newcomer-specific programs and understanding how to document your financial situation in a way that gives those lenders the confidence they need. This includes using international credit references, foreign income documentation, employment letters, and other alternative forms of verification that established Canadians would not typically need.Ontario is home to a large and growing immigrant population, and the mortgage market has evolved to serve that community. Whether you arrived recently or have been building your life here for a few years, there are financing options available to you.&nbsp;<h2 class="editor_h2" dir="ltr">Q: What documentation do newcomers need to apply for a mortgage in Ontario?</h2>Because newcomers may not have Canadian tax returns, T4 slips, or an established Canadian credit file, lenders who specialize in this area accept alternative documentation to verify your financial stability.Commonly accepted documentation includes a valid work permit or proof of permanent residency, a Canadian employment letter confirming your position, salary, and employment status, recent pay stubs from your Canadian employer.The more documentation you can provide that demonstrates your financial responsibility and stability, the stronger your application will be. I help newcomer clients organize their documentation strategically so that the application tells a clear and compelling story to the lender. Q: What if I do not have a Canadian credit history yet?Not having a Canadian credit score is one of the most common concerns newcomers bring to me, and it is more manageable than most people think. Lenders who specialize in newcomer mortgages do not simply decline applications because a credit bureau file does not exist in Canada. They accept alternative forms of credit verification that demonstrate you have a responsible history of meeting financial obligations.Depending on the lender, one of the following will typically satisfy the credit requirement. If you are coming from the United States or the United Kingdom, an international credit bureau report showing a strong credit profile from your home country may be accepted directly. This is the most straightforward path for borrowers from those two countries specifically.If you do not have a US or UK credit file, most lenders will accept two alternative Canadian credit sources that show 12 months of timely payments with no arrears. The two sources that are most commonly accepted together are a landlord letter confirming your rental payment history and a utility or service bill history. The landlord letter needs to be detailed — it should confirm your name as a tenant, your monthly rent amount, the length of your tenancy, and your payment history. The utility confirmation can come from hydro, water, telephone, cable, cell phone, or auto insurance, verified either through a letter from the provider or 12 months of billing statements.For borrowers who cannot satisfy either of those options, bank statements are an accepted alternative. If your loan-to-value ratio is above 90%, meaning your down payment is less than 10%, lenders typically want to see 12 months of statements from a recognized Canadian financial institution or from a financial institution in your country of origin that confirms satisfactory savings and repayment habits. If your loan-to-value is 90% or below, 6 months of primary account bank statements from a recognized financial institution is generally sufficient.Finally, a reference letter from your recognized financial institution is also accepted as an alternative credit source. This is a letter confirming your account standing and your history as a customer in good standing.The practical takeaway is this — if you are new to Canada and have been renting, paying utilities, and banking here, you likely already have what you need to satisfy these requirements. The documentation just needs to be organized properly and submitted to the right lender. That is exactly where I can help. Many newcomer clients are closer to mortgage-ready than they realize.&nbsp;<h2 class="editor_h2" dir="ltr">Q: How much do I need for a down payment as a newcomer to Canada?</h2>The down payment requirements for newcomers vary depending on your residency status and the specific lender program you are using.For permanent residents, CMHC has a specific newcomer program that allows a minimum down payment of 5% for homes under $500,000, the same as Canadian citizens. This is a significant benefit, as it means permanent residents can enter the housing market with the same down payment threshold as established Canadians.For non-permanent residents such as those on work permits, some lenders will still provide financing, though the down payment requirement is typically higher, often 20% or more, and the product selection is more limited.Regardless of your status, the source of your down payment must be documented and verifiable. If you are bringing funds from outside Canada, you will need to provide evidence of the source of those funds and show that they have been in a Canadian account for a minimum period, typically 90 days. If the funds are a gift from a family member, a gift letter is required.&nbsp;<h2 class="editor_h2" dir="ltr">Q: Does my immigration status affect my ability to get a mortgage?</h2>Yes, your immigration status is a factor, but not in the way many newcomers fear. Having temporary status does not automatically disqualify you, though it does affect which lenders and programs are available to you.Permanent residents have the most flexibility and access to the widest range of lenders and programs. Most lenders treat permanent residents essentially the same as Canadian citizens with minor documentation differences.Temporary residents on work permits can qualify for a mortgage through certain lenders, particularly if you have a valid work permit with sufficient time remaining, are employed by a Canadian employer, and can demonstrate that you intend to remain in Canada. A work permit with less than one year remaining may limit your options, while a multi-year permit significantly improves them.Students and those on visitor visas face much more limited options and will generally require a significantly larger down payment if financing is available at all.If you are unsure how your specific immigration status affects your mortgage options, the best approach is to have a direct conversation with me so we can assess your situation accurately rather than making assumptions. &nbsp;Q: Are there specific lenders with newcomer mortgage programs in Ontario?Yes, and identifying the right lender is one of the most valuable things a broker does for newcomer clients. Not all lenders have dedicated newcomer programs, and submitting your application to a lender without one wastes time and results in an unnecessary decline on your credit file.On the insurance side, all three Canadian mortgage default insurers — CMHC, Canada Guaranty, and Sagen — have specific New to Canada programs. These programs allow the use of alternative credit references and international income documentation as described above. Because all three insurers have newcomer-friendly guidelines, a wide range of institutional lenders who participate in insured lending can accommodate these files.Monoline lenders, which are lenders who operate exclusively through the mortgage broker channel and do not have retail branches, also have strong newcomer programs. Monolines are often well set up for these files because they work directly with brokers who manage the documentation process and present the application properly. In many cases monoline lenders offer competitive rates alongside flexible newcomer criteria, making them an excellent option for many new to Canada borrowers.I also have access to major banks and credit unions with dedicated newcomer programs, giving you a broad range of options under one application. Placing your file with the right lender from the start makes a meaningful difference in both your approval outcome and the terms you receive. That matching process is exactly what I am here for.&nbsp;<h2 class="editor_h2" dir="ltr">Q: What should newcomers know about buying property in Ontario?</h2>Beyond the mortgage itself, there are several things newcomers should understand about the Ontario real estate and mortgage landscape before purchasing.The Non-Resident Speculation Tax, commonly known as NRST, applies to certain buyers who are not Canadian citizens or permanent residents. If you are a permanent resident, you are exempt. If you are on a work permit, you may also qualify for an exemption. It is critical to confirm your status with a real estate lawyer before submitting an offer, as this tax adds 25% to the purchase price for those who are subject to it.Land transfer tax in Ontario applies to all buyers including newcomers, and Toronto has an additional municipal land transfer tax if purchasing in the city. These costs need to be budgeted for as part of your closing costs.Working with a real estate agent and a lawyer who have experience working with newcomer buyers is also worthwhile, as they can guide you through the cultural and procedural differences in the Canadian real estate transaction process.<a href="https://" rel="noopener" class="editor_link">I work with newcomers across Ontario </a>and can connect you with professionals in my network who understand your specific situation. Getting the right team around you from the start makes the entire process smoother and protects you from costly mistakes.&nbsp;

No Canadian credit history? I help newcomers and permanent residents qualify for a mortgage in Ontario with lenders who have programs built for you

Yes. Canada has mortgage programs specifically designed for newcomers, permanent residents, and even some temporary residents who want to purchase pro

New to Canada Mortgages

<img src="https://brokerwebsitesimage.azureedge.net/m3brokerimages1/next/brokerAdmin/33133/b6e0fb20-91e1-4edc-bb2c-826b28fc6ebcimage.jpg" alt="PURCHASE PLUS IMPROVEMENTS-MORTGAGE BROKER MELISSA HARNEY" width="inherit" height="inherit" class="editor_image"><h2 class="editor_h2" dir="ltr">Q: What is a Purchase Plus Improvements mortgage?</h2>A Purchase Plus Improvements mortgage is a product that allows you to include the cost of planned renovations or upgrades into your mortgage at the time of purchase, rather than paying for them separately out of pocket or through a high-interest line of credit after the fact.The way it works is straightforward. You find a property, identify the renovations you want to make, obtain contractor quotes for those renovations, and apply for a mortgage based on the estimated post-renovation value of the home rather than just the purchase price. The lender holds back the renovation funds at closing and releases them once the work is completed and verified.This product is available through both insured and conventional mortgage channels, which means it is accessible to buyers with less than 20% down as well as those with larger down payments. It is particularly well suited for buyers who want to purchase a property that needs work but do not have the cash reserves to fund both a down payment and a full renovation.&nbsp;<h2 class="editor_h2" dir="ltr">Q: How much can I borrow for renovations under this program?</h2>The maximum renovation amount varies by lender and by whether the mortgage is insured or conventional. For insured mortgages, most lenders allow renovation amounts up to 10% of the purchase price or a fixed dollar cap, commonly $40,000, whichever is less. Some lenders have higher limits.For conventional mortgages with 20% or more down, lenders may allow larger renovation amounts. The key constraint is that the total mortgage amount, including the renovation funds, cannot exceed 80% of the post-renovation appraised value for conventional mortgages, or 95% for insured mortgages.This means the appraised value after renovations are completed needs to support the total loan amount you are requesting. An appraisal is ordered as part of the approval process, and the appraiser will assess both the current value of the property and the projected value once the planned renovations are complete. The lender's calculation is based on that post-renovation number.&nbsp;<h2 class="editor_h2" dir="ltr">Q: What types of renovations are eligible under Purchase Plus Improvements?</h2>Eligible renovations are generally those that are permanently attached to the property and that add to its value. Common examples include kitchen renovations, bathroom upgrades, flooring replacement, roof repairs or replacement, window and door replacement, HVAC system upgrades, electrical panel upgrades, foundation repairs, basement finishing, and accessibility modifications.Costs that are typically not eligible include furniture and appliances that are not built-in, landscaping in many cases, decorative items, and work that does not permanently improve the structure of the home.The lender will want to see detailed contractor quotes for all planned work before approving the renovation amount. Vague estimates or allowances without a proper quote will not be accepted. The quotes need to come from licensed contractors and should be specific about the scope of work and the total cost.If you are planning to do some of the work yourself, most lenders will not include sweat equity or owner labour costs in the renovation budget. The funds are released based on verified completed work, and self-performed work is difficult to verify independently.&nbsp;<h2 class="editor_h2" dir="ltr">Q: How does the money get released for the renovations?</h2>The renovation funds are held back by the lender at closing and are not released to you immediately. This is an important distinction from simply borrowing more money and using it however you choose. The funds are specifically earmarked for the approved renovation work.Once the renovations are completed, you contact the lender and request an inspection. The lender will send an appraiser or inspector to verify that the work has been done as described in the approved quotes. Once the work is confirmed to be complete and satisfactory, the lender releases the holdback funds.In some cases with larger renovation projects, partial releases may be available at various stages of completion rather than waiting for all work to be finished. This depends on the lender and the nature of the project.The timing of the holdback release is something to plan carefully with your contractor. You will need to either have arrangements to pay the contractor in stages, or ensure the contractor is willing to wait for final payment until the holdback is released. This is a conversation to have with your contractor before the project begins.&nbsp;<h2 class="editor_h2" dir="ltr">Q: What are the advantages of using Purchase Plus Improvements versus other financing options?</h2>The primary advantage is rate and cost efficiency. By including your renovation costs in your mortgage, you are financing those costs at your mortgage interest rate rather than at the much higher rates associated with personal lines of credit, renovation loans, or credit cards. Over the course of a renovation project costing $30,000 to $40,000, this rate differential can represent thousands of dollars in interest savings.A second advantage is that the renovations are completed immediately, so you move into a finished home rather than living through a renovation after closing. Many buyers who purchase a fixer-upper with good intentions find that the renovation drags on for months or years because funding it out of regular income is slow. The Purchase Plus Improvements structure forces the work to be done within a defined timeframe, typically within 90 to 180 days of closing depending on the lender.A third advantage is that you are building equity from day one. By purchasing at a lower price and immediately adding value through renovations, your equity position is stronger than if you had purchased a move-in ready home at a higher price. This can be a smart entry strategy in competitive markets where turnkey properties attract multiple offers and premium pricing.&nbsp;<h2 class="editor_h2" dir="ltr">Q: What do I need to watch out for with a Purchase Plus Improvements mortgage?</h2>There are a few practical realities to be aware of before committing to this product.First, the contractor quotes you submit at approval are binding in the sense that the lender approves a specific scope of work at a specific cost. If costs increase during the renovation or you decide to add scope, the additional amount is not automatically covered. Any changes to the approved renovation plan need to be communicated to the lender, and not all lenders are flexible about mid-project changes.Second, the timeline for completing the renovations is fixed. Most lenders require that renovations be completed within 90 to 180 days of closing. If your contractor faces delays or the project runs over time, you may face complications with the holdback release.Third, you are responsible for managing the renovation process during this period. You need a reliable, licensed contractor who can deliver the work on time and within budget. Getting references, checking credentials, and having a solid written contract with your contractor is essential, not optional.Finally, the appraisal process for this product is slightly more complex than a standard purchase appraisal because the appraiser needs to assess both the current and post-renovation value. Working with a broker who has done these transactions before means <a href="https://" rel="noopener" class="editor_link">I can guide you through the process, help you avoid the common pitfalls, and connect you with lenders whose holdback processes are straightforward to work with.</a>&nbsp;

Finally, the appraisal process for this product is slightly more complex than a standard purchase appraisal because the appraiser needs to assess both

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