That bank pre-approval number? It may not be the whole story.
Understanding your real purchase power — across 140+ lenders — can be the difference between losing a bid and owning the home.
The gap most buyers discover too late
Banks are restricted to their own products. A broker shops 140+ lenders — mono-lines, credit unions, trust companies — so you see the market, not just one shelf. Rate is one piece. Amortization, prepayment privileges, portability, and penalty structure matter just as much over a five-year term.
You’re ready to buy — or getting close
- First purchase or upsizing to a larger home
- Pre-approval in hand but want a second opinion
- Competitive market — needs a fast, credible approval
- Income is standard T4 employment
- Down payment ready (5% minimum for insured; 20%+ for conventional)
- Credit score above 620 (options exist below this too)
What lenders look at
- GDS ratio: housing costs ≤39% of gross income
- TDS ratio: all debt payments ≤44% of gross income
- Stress test: qualify at contract rate + 2% (or 5.25% floor)
- Credit history: 2+ years, no recent missed payments
- Property: owner-occupied, 1–4 units, owner-occupied portion
- Down payment source: documented — savings, gift, RRSP
Programs that can reduce your out-of-pocket
RRSP Home Buyers’ Plan
Withdraw up to $60,000 (per person) from your RRSP tax-free for a first home. $120,000 for couples. Must repay over 15 years.
First Home Savings Account (FHSA)
Contribute up to $8,000/year ($40,000 lifetime). Contributions are tax-deductible; withdrawals for a qualifying home are tax-free.
Land Transfer Tax Rebate
Ontario first-time buyers: up to $4,000 provincial rebate. Toronto first-time buyers get an additional municipal rebate up to $4,475.
CMHC Mortgage Insurance
Down payment below 20%? Mortgage default insurance unlocks lower rates — often offsetting the premium cost over the amortization period.
Proof of Income
2 recent pay stubs, 2 years T4s, employer letter confirming employment type and salary.
Down Payment Verification
90-day bank statements showing source. Gift letters if applicable. RRSP withdrawal confirmation if using HBP.
Credit Authorization
Signed consent for lender credit pull. Bureau run once — does not damage your score.
Property Documents
MLS listing or accepted offer, property tax assessment, strata documents if applicable (condo).
Government ID
Two pieces of ID — one must be government-issued photo ID. Required for anti-money-laundering compliance.
Existing Obligations
Statements for any current mortgage, car loan, line of credit, or student loan used in TDS calculation.
One application. The entire market.
Pre-approval letters often within 24 hours — critical in competitive offers.
Lenders price better through the broker channel than branch walk-ins.
Not every lender loves every borrower profile. I match you to the one that does.
Broker is paid by the lender on funded mortgages. Advice and shopping are free.
How a Purchase Mortgage Works in Ontario
The short version — and you can always call for the full picture.
Prefer it explained in plain English?
In a short, no-obligation call I’ll walk you through exactly how this works for your situation — no jargon, no pressure.
Prefer to talk? Call or text 289-834-9099 — free, no pressure.
Ready to talk numbers?
No obligation. Just a straight conversation about your mortgage options.