When it comes to mortgages in Canada, misinformation spreads fast—and often holds people back from making confident decisions. Whether you’re a first-time buyer or planning your next move, separating fact from fiction can open doors you didn’t realize were available.

Let’s break down some of the most common mortgage myths we hear—and what’s actually true.

Myth #1: You Need 20% Down to Buy a Home

This is probably the biggest myth out there.

Reality:
In Canada, you can buy a home with as little as:

• 5% down for homes up to $500,000
• 10% on the portion above $500,000 (up to $1.5M)

If your down payment is under 20%, you’ll need mortgage default insurance—but that’s what makes homeownership accessible sooner.

Waiting to save 20% can sometimes cost more if home prices rise while you wait.

Myth #2: You Need Perfect Credit to Get Approved

Many buyers assume anything less than excellent credit disqualifies them.

Reality:
While strong credit helps, you don’t need perfection. Many lenders will consider:

• Stable income
• Manageable debt levels
• A reasonable credit score (often 600+ depending on the lender)

There are also alternative lending options for those rebuilding credit.

The right strategy matters more than a perfect score.

Myth #3: The Lowest Rate Is Always the Best Mortgage

Rate shopping is important—but focusing only on the lowest number can backfire.

Reality:
Mortgages come with different features that can impact your flexibility and long-term cost:

• Prepayment options
• Penalties for breaking the mortgage
• Portability if you move

A slightly higher rate with better terms can save you thousands if your plans change.

Myth #4: You Should Always Choose a Fixed Rate

Fixed rates feel safe—but they’re not always the best fit.

Reality:
Both fixed and variable rates have their place:

• Fixed: predictable payments and stability
• Variable: potentially lower cost over time (depending on market conditions)

The “right” choice depends on your risk tolerance, timeline, and financial goals—not headlines.

Myth #5: You Can’t Switch Lenders at Renewal

Many homeowners simply sign their renewal offer without question.

Reality:
At renewal, you can:

• Negotiate with your current lender
• Switch lenders without penalty (in most cases)
• Restructure your mortgage to better fit your current situation

This is one of the easiest opportunities to save money—and it’s often overlooked.

Myth #6: Pre-Approval Guarantees You a Mortgage

A pre-approval is helpful—but it’s not a final approval.

Reality:
A lender still needs to review:

• The property you’re buying
• Updated income and credit
• Any financial changes since pre-approval

Think of pre-approval as a strong starting point—not a guarantee.

Myth #7: Renting Is Always Cheaper Than Owning

This one depends heavily on your situation.

Reality:
While renting can be cheaper short-term, ownership builds:

• Equity over time
• Long-term financial stability
• Protection from rising rents

The better question isn’t “Which is cheaper?” but “Which fits your life and goals right now?”

The Bottom Line: Strategy Beats Assumptions

Mortgage myths often come from outdated information or one-size-fits-all advice. The truth is, mortgage solutions in Canada are flexible—and often more accessible than people think.

That’s where working with a mortgage professional makes a real difference.

Instead of guessing or relying on myths, you can:

• Compare multiple lenders (not just one bank)
• Build a strategy tailored to your goals
• Understand your real options before making a move

Let’s Make It Simple

If you’ve been holding off because of something you thought was true, it might be time to revisit your options.

A quick conversation can help you understand:

• How much you can actually afford
• What your best mortgage options look like
• Whether now is the right time—or not

No pressure—just clarity.

Reach out anytime to explore your options with expert guidance.