Frequently Asked Mortgage Questions (And Straightforward Answers)

If you're buying a home—especially for the first time—there's a good chance you've got a few mortgage questions. You're not alone. These are some of the most common questions I get from clients every week.

Let’s walk through the top ones and break them down into simple, helpful answers.

1. How much do I need for a down payment in Canada?

The minimum down payment depends on the home’s purchase price and the type of purchase.

For owner-occupied homes, the standard rules are:

5% on the first $500,000
10% on the amount between $500,000 and $1,499,999
20% if the purchase price is $1.5 million or more

For example, if you're buying a $600,000 home, you’d need 5% on the first $500,000 ($25,000) and 10% on the remaining $100,000 ($10,000), for a total of $35,000.

2. What’s the difference between a pre-qualification and a pre-approval?

A pre-qualification is a quick estimate based on numbers you provide—no documents, no credit check. A pre-approval goes deeper: we verify your income, credit, and down payment documents to give you a real number you can shop with.

If you’ve been told you’re pre-approved but haven’t submitted documents, you’re not truly pre-approved.

3. Do I have to pay my mortgage broker?

Nope. Mortgage brokers are paid by the lender once your mortgage closes. There’s no fee to work with a broker on typical residential purchases.

4. Can I use a gift from family as part of my down payment?

Yes, gifted down payments are common—especially for first-time buyers. We’ll usually just need a signed gift letter confirming the money isn’t a loan and doesn’t need to be repaid.

5. Can I buy a home with bad credit?

Yes, depending on the situation. You may need a larger down payment or work with a lender that allows for lower credit scores. If your credit needs work, we can also build a plan to get you there.

The Bottom Line

Mortgage rules can be confusing, especially with so many different opinions and advice floating around. If you’re not sure where to start, start with your questions.

I’m always happy to walk through the details, whether you're buying now or just planning ahead.

Call or text (902) 402-9779, or visit www.gregmatthews.tmgbroker.com/apply.aspx to fill out a five-minute pre-approval form.