To help you make confident, informed decisions, let’s bust some of the most common mortgage myths and uncover the truth behind them.
Myth #1: You Need a 20% Down Payment to Buy a Home
The Truth: While putting 20% down does help you avoid paying mortgage default insurance, it’s not a requirement. In Canada, you can purchase a home with as little as 5% down (for homes under $500,000).
For homes between $500,000 and $999,999, the first $500,000 requires 5% down, and the remaining amount requires 10%. For homes over $1 million, a 20% down payment is required.
Tip: Even if you don’t have 20% saved, you may still qualify for a mortgage — especially with the right guidance from a broker.
Myth #2: The Bank is Your Only Option for a Mortgage
The Truth: Many buyers assume they have to go straight to their bank for a mortgage, but that’s not the case. Mortgage brokers work with multiple lenders — including banks, credit unions, and alternative lenders — to find the best rate and terms for your situation.
This can be especially valuable if you’re self-employed, new to Canada, or have less-than-perfect credit.
Myth #3: The Lowest Rate is Always the Best Deal
The Truth: A low interest rate sounds appealing, but it doesn’t always equal the best mortgage. Some ultra-low-rate mortgages come with restrictions — such as large penalties for breaking your mortgage early, limited prepayment options, or higher fees.
It’s important to look at the overall terms, not just the rate. A slightly higher rate with flexible conditions may save you money (and stress) in the long run.
Myth #4: You Can’t Get a Mortgage if You’re Self-Employed
The Truth: Being self-employed can make the mortgage process a little different, but it doesn’t disqualify you. Lenders often just need additional proof of income, such as tax returns, business financials, or bank statements.
With the right preparation and a broker who understands your situation, self-employed Canadians can absolutely qualify for a mortgage.
Myth #5: Once You Have a Mortgage, You’re Stuck With It
The Truth: Mortgages aren’t set in stone. Many homeowners refinance to access equity, lower their rate, or consolidate debt. Others switch lenders at renewal to get better terms.
Your mortgage should grow with you — and a broker can help you explore options at every stage of homeownership.
Final Thoughts
Don’t let mortgage myths hold you back from becoming a homeowner. By understanding the truth, you can make smart, confident choices that support your long-term financial goals.
If you’re planning to buy in Nova Scotia or anywhere in Canada, I’d be happy to walk you through the process, answer your questions, and find the mortgage that’s right for you.
Contact me today to get clear, personalized mortgage advice — no myths, just facts.