Vivek Reddy Gun

Every federally regulated lender (RBC, TD, BMO, CIBC, Scotia, NB, plus monolines like MCAP and First National) must qualify you at the greater of your contract rate plus 2% or 5.25% — whichever is higher.

This is OSFI's B-20 rule, introduced in 2018. It doesn't affect what you pay; it only affects whether you qualify for the loan amount.

Two scenarios fail the test that surprise people: high TDS ratios from car loans, and short employment history on a new role even at the same employer.

The First Home Savings Account (FHSA) lets you contribute up to $8,000/year ($40,000 lifetime). Contributions are tax-deductible (like an RRSP) and withdrawals for a qualifying first home are tax-free (like a TFSA).

The RRSP Home Buyers' Plan lets you withdraw up to $60,000 from your RRSP for a first home — and pay it back over 15 years without tax.

Two-spouse household? Both can use both, so the family stack is up to $200K. Most buyers don't know this — your advisor will map it for you before you make an offer.

Variable-rate mortgages break for three-month interest — typically a few thousand dollars. Easy.

Fixed-rate mortgages break for the greater of three-month interest OR an Interest Rate Differential (IRD). The IRD compares your rate to today's posted rate for the remaining term — and it can be brutal: $15K, $30K, even $60K on big balances.

Always model the net-of-penalty math before refinancing. If the new rate doesn't beat the old by enough to clear the penalty AND save you money, don't break. Your advisor runs this on every refi consult — most refis end up worth it; some don't.

Rate-beat offer: if you bring a written, current offer from one of the six largest banks for the same product, term and amount, we will try to beat it or pay you $500 by e-transfer. Prefer to give it away? We'll donate the $500 to your favourite charity instead. Conditions apply; see mortgagesquad.ca/rate-beat-guarantee.

We benchmark within 24 hours of receiving your written offer and complete application; if we can't beat it, the $500 is sent within 5 business days of our benchmark email.

Most brokers won't offer this because they don't have the lender breadth. We work with 100+ lenders — A, B, monoline, credit union, private — which gives us a wide market to shop for your rate or programme.