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In Ontario, a mortgage is an efficient and fast method to acquire financing. People that are first time home buyers or are in need of fast cash for their next residential or commercial purchase, should look towards mortgage loans. It’s extremely easy to get approved for a mortgage loan in Ontario. There’s no more need to wait in long lines or fill out a bunch of paperwork. With just a completion of an online application, within a few days, you can find yourself receiving your Ontario mortgage. Smarter Loans have already done most of the groundwork for you. Check out the list below to see a bunch of trusted companies that offer mortgage loans in Ontario.
Feel free to take a look and compare your options. Usually those options include, products being offered, interest rates, terms, qualifications and customer testimonials. After finding the right loan that works for you, click on “Apply Now” next to the lender that you prefer. At their website, you would be prompted to fill out a mortgage loan application. Another option is to pre-apply for a Ontario mortgage loan through Smarter Loans, and a member of our team will find a matching company for your needs. They would reach out to you in 24-48 hours to finish processing your request.
Qualifying for a mortgage in Ontario is a matter of finding a lender who will work with your particular financial circumstances. Several factors determine your eligibility for a mortgage and the size and type of mortgage you can get:
You will need to be able to provide documentation on all of these factors, as well as ID and proof of address when you apply. Each lender will then have their own criteria for deciding whether you pass their approvals process.
As Canada’s biggest province, and the most expensive in which to buy a house, Ontario has a huge mortgage market. Lenders fall into several categories: traditional lenders (such as banks and credit unions), mortgage companies, other financial providers, and niche lenders. This last category includes private lenders, bad credit lenders, mortgages for new construction, reverse mortgages, and so on.
Interest rates in Ontario are the lowest in the country. The exact interest rate you qualify for will depend on your personal circumstances – your income, credit score, downpayment, and so on – but generally rates range from 2% to 5%, with the average sitting at 3%. Both variable rates and fixed rates are widely available.
The Government of Canada has stipulations on the size of downpayment property buyers must have, which correspond to the value of the property being purchased. Homes worth under $500,000 need a downpayment of at least 5%. Homes worth more than this need at least a 10% downpayment – even more for properties worth over $1 million. The average property price in Ontario is $594,000, so the average required downpayment is $59,400.
Buying a property always comes with a slew of fees and taxes. In general, the closing cost when buying a house in Ontario is about 1.5-4% of the sale price of the home, and this amount consists of: home inspection fees, mortgage lender fees, title insurance, legal fees, mortgage insurance, broker fees, Land Transfer Tax, and so on. If you buy a newly constructed home, you will also have to pay 15% HST.
The Canadian government has several programs to help first-time buyers get a foot on the property ladder, all of which apply to Ontario residents. The First-Time Home Buyer Incentive allows eligible buyers to finance a portion of their purchase through the government. The Home Buyer’s Plan allows you to withdraw up to $35,000 from an RRSP to assist with your purchase. There are also tax incentives: the Home Buyer’s Amount provides up to $5000 in tax credits, and buyers of new properties worth less than $350,000 are eligible for HST rebates.
