Intelligent Mortgage
Comparisons for Canada.

The stress test ensures you can still afford your mortgage if rates rise. You must qualify at a rate that is the higher of either 5.25%, or your specific contract rate plus 2%. This is a federal requirement for all buyers from regulated lenders.

A **fixed rate** locks in your interest rate for your entire term, giving you predictable, stable payments. A **variable rate** can fluctuate with the lender's prime rate. It often starts lower but carries the risk that your payment amount could change.

It's tiered. For homes under $500k, the minimum is 5%. For homes between $500k and $1M, it's 5% on the first $500k and 10% on the amount above that. For homes $1M or more, the minimum down payment is a flat 20%.

A **high-ratio** mortgage is one with a down payment of less than 20%. It legally requires mortgage default insurance (like from CMHC). A **conventional** mortgage has a down payment of 20% or more and does not require this insurance.

Your bank can only offer you their own products. A **mortgage broker** works for you, not the lender, and can shop your application to dozens of different lenders—including banks, credit unions, and trusts—to find the best possible rate and features for your situation.

Amortization is the total length of time it will take to pay off your entire mortgage. The most common amortization period in Canada is 25 years. A shorter amortization means higher payments, but you'll pay less interest overall and be mortgage-free sooner.