Toronto Mortgage FAQ: Rates, Pre-Approval, Renewal and Refinancing

The questions Toronto buyers and owners actually ask. Where the honest answer is "your bank may be fine," that is what it says.

How do I choose a mortgage broker in Toronto?

Verify the licence first. Ontario brokering is regulated by FSRA, and both the agent and the brokerage hold licences searchable on FSRA's free public register. Ours is FSRA #13737. Then ask three things: which lenders they access and why they chose yours, how they get paid, and what happens if the A lenders decline you. Notice too whether they ever tell you not to do something — a broker who never says wait is selling. See the full checklist.

Broker or bank — which is actually better?

It depends on your file, and anyone answering in one word is guessing. A bank gives one lender's products in one place, often with a relationship discount — and for a prime borrower holding a competitive offer, that can be right. A broker gives you a panel, which matters most when your file is not textbook: self-employed income, no Canadian credit history, a rental suite, bruised credit. Some credit unions, provincially regulated, qualify on the contract rate. See bank vs mortgage broker.

What does a mortgage broker cost me?

On most prime (A-lender) mortgages, nothing directly — the lender compensates the brokerage; there is no borrower-paid fee. On B-lender and private mortgages, fees do apply, typically a brokerage fee and often a lender fee. In Ontario those must be disclosed in writing before you commit — a regulatory requirement, not a courtesy. So the question is never "is there a fee." It is "what is it, in writing, and why does my file need one?"

What are mortgage rates in Toronto right now?

We do not quote rates in articles — any number here is stale within days, and your rate is not one number anyway. It depends on term, down payment, insurability, property type and credit. Current pricing: our rates page. For backdrop, the Bank of Canada held at 2.25% on July 15, 2026, a sixth consecutive hold, next decision September 2. The policy rate drives variable pricing; fixed rates follow bond yields, so the two diverge. See fixed vs variable.

How long does pre-approval take?

Generally 24 to 72 hours after your documents are complete — and "complete" is doing the work in that sentence. The clock starts when the last pay stub or notice of assessment lands, not when you call. Gathering documents is the longer half. Anyone promising approval before seeing your paperwork is promising what they do not have. Know the difference, too, between a rate hold and a full pre-approval. See how pre-approval works.

What income do I need to buy in Toronto?

At the City of Toronto average price of $1,081,375 (TRREB, June 2026) with 20% down, roughly $201,000 of household income. That is higher than most calculators say, because you are qualified at the stress-test rate, not the rate you pay. Two things move it most: other debt (a $500/month car payment cuts your qualifying mortgage by roughly $70,000–$80,000) and a co-applicant. See the full math.

What is the minimum down payment in Toronto?

Not 5%. Canada's minimum is tiered: 5% on the first $500,000, 10% from $500,000 to $1.5M, 20% above $1.5M — where default insurance is unavailable entirely. At Toronto's average price that is $83,138 (7.7%), not $54,069; 20% would be $216,275. It bites harder here than almost anywhere, because much of the detached market — averaging $1.65M — sits above the $1.5M line. See the down payment calculator.

What is the stress test, and can I get around it?

Every federally regulated lender must qualify you at the greater of your contract rate + 2% or 5.25%. At a representative 5.04% five-year fixed, that is 7.04% — your income must support a payment you will never make. No, you cannot negotiate it at a bank; it is federal and uniform. What helps: clearing other debt, a co-applicant, a larger down payment, a 30-year amortization, or a credit union. See the stress test.

My mortgage is renewing. Should I just sign the bank's offer?

Read it first, and start about four months out. A renewal offer is the lender's opening position, not their best, and nearly all the value of a renewal sits in whether you respond to it. Get a competing quote — then take your bank's improved offer if it wins, which happens often. Signing on day one costs you the negotiation. See the Toronto renewal offer.

How much equity can I actually refinance?

Up to 80% loan-to-value — the federal ceiling; refinances cannot be default-insured. A HELOC caps at 65% standalone, 80% combined with a mortgage in the same charge. Two cautions matter more than the arithmetic. Breaking a fixed mortgage mid-term triggers a penalty — the greater of three months' interest or the IRD, which can be large. And consolidating unsecured debt into your home secures it against the roof: lower payment, higher stakes. See consolidating debt.

Can I get a mortgage with bad credit?

Often yes — but the better question is should you, now? B and private lenders price credit risk, so the cost is real: a higher rate, and on private files, fees. If your credit problem is recent and fixable, six months of clean history can move you from private to B, or B to prime — worth far more than closing this month. If your timeline is fixed, a short-term B or private mortgage with a written exit plan is legitimate. See bad credit mortgages.

What documents will I need?

Salaried: recent pay stubs, a letter of employment, two years of T4s, notices of assessment, 90 days of bank statements showing the down payment (lenders trace its source), photo ID, and the purchase agreement. Self-employed applicants add two years of T1 Generals with the statement of business activities, notices of assessment confirming no tax owing, and often business financials. Buying a condo? Your lawyer orders the status certificate. See the condo guide.

Anything else Toronto-specific?

One thing catches nearly everyone: Toronto charges land transfer tax twice — provincial plus municipal, both cash on closing, neither financeable. First-time buyers can claim up to $4,000 back provincially and $4,475 municipally. Budget it before setting your down payment: land transfer tax calculator. If you are still saving, the FHSA ($40,000 lifetime) and RRSP Home Buyers' Plan ($60,000 each) stack. See first-time buyer mortgages.

Figures: City of Toronto average selling price $1,081,375, detached average approximately $1.65M, TRREB, June 2026; Bank of Canada policy rate held at 2.25% on July 15, 2026. The 5.04% contract rate is representative and illustrative only — not an offer or a quote; current pricing is at /rates. Program limits, rebate amounts and lender policies change. General information only, not mortgage advice for your specific situation. Mortgage Squad Advisors, FSRA brokerage #13737, Vaughan.