The Top Questions Canadians Are Googling About Mortgages (And Our Answers)

If you’ve ever typed “mortgage Canada” into Google, you’re not alone. Every day, Canadians across the country are searching for clarity on mortgages — questions big and small. At Swivel, we believe the more you understand, the more confident you’ll feel. Below are some of the most searched mortgage questions in Canada — and clear, no-nonsense answers to guide you.

1. What is a mortgage, and how does it work?

A mortgage is a secured loan used to purchase real estate. You repay it over time (often 15–30 years) with interest. The home is collateral: if you default, the lender can take possession.

Key components:

• Principal: the amount you borrow

• Interest: what you pay the lender for borrowing

• Term: the length of time your interest rate is locked (often 1,2,3, or 5 years)

• Amortization: total time it takes to pay off the mortgage (e.g. 25 or 30 years)

• Payments: monthly, biweekly, etc.

• Prepayment privileges & penalties: rules on paying extra or breaking your mortgage early

2. How much mortgage can I afford?

Lenders use income, debt, and credit history to determine how much you qualify for — but affordability should also reflect what you feel comfortable with.

Here’s what matters most:

• Gross Debt Service (GDS) ratio: your housing costs (mortgage, property taxes, heating) as a share of income

• Total Debt Service (TDS) ratio: your total debts plus housing costs as a share of income

• Credit score and history

• Down payment size

• Stability of income and employment

A lender might approve you for a certain number — but that doesn’t mean you should spend it all. Always leave room for lifestyle, savings, and future expenses.

3. What is the minimum down payment in 2025?

As of 2025, the minimum down payment rules in Canada are:

Recent updates:

• The cap for insured mortgages has been increased from $1 million to $1.5 million. Homes priced up to $1.5M can now qualify for mortgage insurance, meaning buyers may use the 5%/10% structure instead of a full 20%.

• First-time buyers purchasing insured homes may now be eligible for 30-year amortizations, giving more flexibility and lower monthly payments.

• Down payments under 20% require mortgage default insurance (e.g. CMHC), which protects the lender and allows for lower down payments.

4. Fixed vs. Variable Rate: Which one should I choose?

Canadians often ask this — and the answer depends on your comfort with risk.

• Fixed rate: predictable payments for your entire term — perfect for budgeting and stability.

• Variable rate: can move up or down with the market. You could save if rates fall, but pay more if they rise.

• Hybrid rate: part fixed, part variable, offering a middle ground.

If stability matters most, go fixed. If you’re comfortable with some fluctuation — and want the chance to benefit from future rate drops — variable might work for you.

5. What are prepayment privileges and penalties?

Prepayment privileges let you pay extra on your mortgage — through lump sums, increased payments, or accelerated schedules — without a penalty. This helps you pay off your mortgage faster and save on interest.

Prepayment penalties apply if you break or pay out your mortgage early. The amount depends on your lender and whether you have a fixed or variable rate. Always ask your broker to explain the penalty before signing your mortgage contract.

6. What do lenders look at besides income and down payment?

Every lender considers a mix of financial and property factors:

• Credit score and payment history

• Debt levels and ratios (GDS/TDS)

• Stability of employment and income

• Type of property (house, condo, rental)

• Appraised value and condition

• Location and market trends

• Source of down payment (savings, gift, RRSP withdrawal, etc.)

A strong broker can help structure your application to highlight your strengths — especially if you’re self-employed or new to Canada.

7. How long is a mortgage rate or pre-approval valid?

Most mortgage rate holds and pre-approvals are valid between 90 and 120 days, depending on the lender. If rates rise during that time, you’re protected. If they fall, you can often get the lower rate before closing.

8. Can I pay off my mortgage faster?

Yes — and small changes can make a big difference.

Ways to pay off faster include:

• Making lump-sum payments whenever possible

• Increasing your regular payment amount

• Choosing accelerated biweekly or weekly payments

• Applying annual bonuses or tax refunds toward your mortgage

Always confirm the limits of your prepayment privileges to avoid penalties.

9. What happens when my mortgage term ends?

At the end of your term (typically every 3 to 5 years), you’ll need to renew or refinance.

• Renewal means signing on for another term, possibly with a new rate.

• Refinancing means renegotiating the loan — often to access equity, consolidate debt, or change terms.

Start exploring options 4–6 months before renewal to get the best rates and avoid surprises.

10. What government incentives or programs can help?

Here are key programs Canadians are using in 2025:

• Home Buyers’ Plan (HBP): Withdraw up to $60,000 from your RRSP for a down payment.

• First Home Savings Account (FHSA): Save up to $8,000 per year tax-free toward your first home.

• First-Time Home Buyers’ Tax Credit: Non-refundable credit to help offset closing costs.

• Land Transfer Tax Rebates: Available for first-time buyers in many provinces and cities.

These programs can make a real difference — especially if you combine them.

Final Thoughts — From the Swivel Team

These are the top questions Canadians are searching right now — and for good reason. With new rules, shifting rates, and more programs than ever, today’s mortgage landscape can feel complex.

At Swivel Mortgage Group, we make it simple. We help you understand every step, compare options clearly, and make confident decisions about your mortgage. Whether you’re buying your first home or preparing for renewal, our team is here to guide you — with clarity, transparency, and expert advice you can trust.

Let’s take the guesswork out of mortgages — together.