This Canada Day, let’s set a few things straight about home financing in the True North. We hear these all the time, and they can stop people from taking the next step toward owning or upgrading.
6 Canadian Mortgage Myths Busted
Myth #1: You need 20% down to buy a home
Nope! You can buy with as little as 5% down (with mortgage insurance). And yes, even in 2025, there are great options for first-time buyers. Here’a quick table that sets the record straight about this mortgage myth:
| Purchase price of your home | Minimum down payment amount |
|---|---|
| $500,000 or less | 5% of the purchase price |
| $500,000 to $1.5 million | 5% of the first $500,000 of the purchase price 10% for the portion of the purchase price above $500,000 |
| $1.5 million or more | 20% of the purchase price |
Myth #2: Your bank always gives the best mortgage rate
Not always. Banks offer their rates. As mortgage brokers, we shop dozens of lenders to find you the most competitive one.
Myth #3: Pre-approval means you’re guaranteed
This is one of the most common mortgage myths we hear from first-time buyers. Pre-approvals are great, but they’re not final approval. We’ll help make sure nothing trips you up in underwriting.
Read more about the do’s and don’ts of pre-approval.
Myth #4: You can’t get a mortgage if you’re self-employed
There are self-employed mortgage options, it just requires a different documentation approach. We’ve helped plenty of business owners and freelancers get approved.
Myth #5: You should always choose the lowest rate
Sometimes the lowest rate comes with restrictions. Flexibility (like prepayment options or portability) can be just as important. That’s why having a trustworthy mortgage broker is so important to help you avoid mortgage traps like hidden fees or pre-payment penalties.
Myth #6: Refinancing is only for people in financial trouble
Many Canadians refinance to consolidate debt, lower their rate, or unlock equity for smart investments. This mortgage myth is clearly debunked by in the CHMC Mortgage Survey where many refinancers were looking to improve their home (33%), buy a rental (6%) or invest (5%).
Have a mortgage myth you’re wondering about?
Ask us here and we’ll give you a straight answer.
Whether you’re waving the flag from your backyard or the beach this weekend, know that we’re here when you’re ready to take your next step.
Happy Canada Day!
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