What are the basic requirements to qualify for a mortgage in London, Ontario?

To qualify for a mortgage in London, ON, lenders typically look at your credit score, income stability, and your Gross and Total Debt Service ratios (GDS/TDS). Unlike the U.S. system, Canadian lenders also require you to pass the federal “Stress Test,” which proves you can afford payments even if interest rates rise. We can help you review these numbers before you start house hunting in neighborhoods like Old South or Hyde Park.

How much down payment do I need for a home loan?

In Canada, the minimum down payment depends on the purchase price. For homes under $500,000, you need 5% down. For homes between $500,000 and $999,999 (common for detached homes in London), you need 5% on the first $500k and 10% on the remainder. If you have less than 20% down, you will need mortgage default insurance (CMHC/Sagen). “Zero down” options are generally not available from major Canadian banks.

What is the difference between a fixed-rate and a variable-rate mortgage?

A fixed-rate mortgage locks in your interest rate and monthly payment for your entire term (usually 3 to 5 years), offering total stability. A variable-rate mortgage often starts with a lower rate, but your interest costs (and sometimes your payments) fluctuate based on the Bank of Canada’s Prime Rate. We can help you decide which strategy fits your risk tolerance and financial goals.

How does my credit score affect my mortgage approval?

Your credit score determines whether you qualify with a “Prime” lender (like a major bank) or an “Alternative” lender. generally, a score of 680+ gets you the best rates in Canada. If your score is lower (600-680), you can still get approved, but you may be subject to stricter income rules. As a local London mortgage broker, we have access to lenders who specialize in helping clients with bruised credit.

What are the closing costs, and how much should I expect to pay in Ontario?

You should budget between 1.5% and 4% of the purchase price for closing costs. In London, Ontario, the largest cost is usually the Provincial Land Transfer Tax (LTT). Other fees include lawyer fees, title insurance, and appraisal fees. The good news? If you are a first-time homebuyer, you may be eligible for an LTT rebate of up to $4,000 to help lower your upfront costs.

About | Mike Boniferro | Mortgage Broker

About Mike Boniferro

My mission is to understand your needs and build a custom tailored mortgage solution that’s best for you, while making the process simple, convenient and stress free.

By choosing to work with a licensed Mortgage Broker, you gain access to options that go far beyond what your bank has to offer. I shop rates and products from major banks, credit unions, dedicated mortgage lenders, and even (when appropriate) alternative and private lending sources to match you with the best solution for your unique situation. It could take a lifetime to fully comparison shop all of your options – or, with one application and one point of contact I can accomplish this for you!

I care about your financial health, so I prioritize connecting you with rates and products that account for both your current standing and your future goals.

Ready to start your journey towards a mortgage that truly fits your needs? Reach out today to explore your best options and experience a stress-free process.

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Mike Boniferro

Mortgage Broker
Originator Licence #M18001301

TLC Mortgage Group
Independently Owned and Operated

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