Mortgage questions, one at a time
Short, plain answers on buying, renewing and refinancing in Toronto and across Ontario. A new question every week.
- Renewals and switchingDo I need to pass the stress test when I switch lenders at renewal?No, not on a straight switch. Since November 21, 2024, switching between federally regulated lenders does not require re-qualifying under the stress test, provided the loan amount and remaining amortization stay the same.
- Refinancing and debt consolidationHow much equity can I take out of my home with a refinance?You can borrow up to 80% of your home's appraised value, minus what you still owe. The refinance payout goes directly toward clearing the debts you choose at closing.
- First-time home buyersFHSA and the Home Buyers' Plan: how first-time buyers use bothThe FHSA is a registered savings account for first-time buyers in Canada. You can contribute up to $8,000 per year, to a $40,000 lifetime limit. Contributions are tax-deductible, and withdrawals used to buy a qualifying first home are tax-free.