How much down payment do I need?
Direct answer: The minimum generally starts at 5%. For homes from $500,000 to $1,499,999, it is 5% of the first $500,000 and 10% of the balance. At $1.5 million or more, at least 20% is generally required.
Example: On an $800,000 purchase, the minimum calculation is $25,000 on the first $500,000 plus $30,000 on the remaining $300,000, for $55,000 total. Qualification and insurer rules still apply.
Remember: Your purchase deposit is generally credited toward the down payment, but you also need separate funds for closing costs and adjustments.
Can I buy a home if I have debt?
Direct answer: Possibly. Debt does not automatically disqualify you; the required monthly payments can reduce the mortgage amount you may qualify for.
Lenders look at income, housing costs, recurring debt payments, credit and the proposed property together. The balance alone does not tell the full story—a car loan with a high monthly payment can affect cash flow differently from another debt with a lower required payment.
Does pre-approval guarantee a mortgage?
Direct answer: No. Pre-approval is useful preparation, but final approval normally requires updated documents and review of the specific property.
A lender may re-check income, debts, credit, source of funds and employment. The property must also meet the lender’s requirements. Avoid taking on new debt or changing jobs without discussing the possible effect with your mortgage professional.
How much cash do I need beyond the down payment?
Direct answer: Plan for land transfer tax, legal fees and disbursements, adjustments, moving and immediate ownership costs. The exact amount depends on the property and transaction.
Eligible first-time buyers may qualify for land transfer tax rebates, but eligibility and current limits must be confirmed. Toronto purchases can involve both Ontario and municipal land transfer taxes.
Condo or freehold: which is better?
Direct answer: The better choice is the one whose total cost, maintenance responsibility and lifestyle fit you.
For a condo, review maintenance fees, the status certificate, reserve fund and possible special assessments. For freehold, build your own repair and maintenance reserve. Compare the complete monthly picture.
Where should I start?
Direct answer: Start with readiness, not listings. Write down your income, required debt payments, savings and regular expenses before choosing a target price.
Next, estimate cash needed, decide on a comfortable monthly budget and speak with the appropriate professionals. Your lender’s maximum and your personal comfort limit may be different.
