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Your mortgage payments over 30 years will add up to $0.

FREQUENTLY ASKED QUESTIONS

WHAT IS A DOWN PAYMENT?

 

The down payment is the initial amount you contribute toward the purchase of a home. While the standard recommendation is 20% of the home’s price, many loan programs allow for lower down payments, sometimes as little as 5%. The more you put down upfront, the smaller your loan amount will be, which can lead to lower monthly payments or allow you to qualify for a more expensive home. A larger down payment can also help you avoid additional costs, such as private mortgage insurance (PMI), which is typically required for loans with less than 20% down.

WHAT IS A LOAN TERM?
 
 
A loan term for a home in Canada, also called a mortgage term, is the length of time you agree to a specific mortgage rate, lender, and contract conditions. Mortgage terms can range from 6 months to 10 years, with 5 years being the most common. At the end of the term, you can renew, refinance, or pay off the remaining balance.
 

WHAT IS A LOAN TYPE?

 

In Canada, the two main types of home loans are:
Fixed-Rate Mortgage – The interest rate stays the same for the entire term, providing predictable payments.

Variable-Rate Mortgage – The interest rate fluctuates based on the market, which can lower or raise your payments.
WHAT IS AN INTEREST RATE?
 
The interest rate determines how much you pay in interest on your mortgage loan. The rate shown in the calculator is an estimate based on current averages, but your actual rate will depend on factors such as your credit score, loan type, down payment, and lender policies. A lower interest rate can significantly reduce the total cost of your loan, making it an important factor when shopping for a mortgage.

WHAT IS A PROPERTY TAX RATE?
 
Property tax rates in Canada vary by province, municipality, and property type. They are calculated as a percentage of a property's assessed value and help fund local services like schools, roads, and emergency services.
 
On average, property tax rates in major cities range from 0.3% to 2.5% of the home’s assessed value.
WHAT IS HOME INSURANCE?
 
 
The loan term is the length of time to repay your mortgage, typically 30 or 15 years. A 30-year loan has lower monthly payments but higher total interest, while a 15-year loan offers a lower rate and faster payoff with higher payments. The right choice depends on your budget and goals.

WHAT IS CONDO FEE?

 

In Canada, a condo fee (or condominium fee) is a monthly payment owners make to cover the building’s maintenance, repairs, and shared amenities. Fees typically include expenses like utilities, landscaping, snow removal, security, and contributions to a reserve fund for future repairs.
The amount depends on factors like building size, amenities (e.g., gym, pool), and location.

WHAT ARE LAND TRANSFER TAXES?

 
Land Transfer Tax (LTT) is a fee paid to the government when purchasing a property. The amount varies by province and is usually based on a percentage of the property’s purchase price. In some areas, first-time homebuyers may qualify for rebates or exemptions. Ontario, for example, has both provincial and municipal land transfer taxes in cities like Toronto. It’s important to factor LTT into your total closing costs when budgeting for a home purchase.

GET MORE INFORMATION

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Justyna Waz

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+1(647) 208-1815 | justyna@everyavenue.ca

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