Mortgage Blog
Canada's Mortgage Experts
Top 5 Myths About Mortgages You Need to Stop Believing
January 28, 2025 | Posted by: Cecile Morell
When it comes to mortgages, misinformation can cost you big time. Let’s bust the top five myths that might be holding you back from making your best move.
Myth #1: You Need 20% Down
False! In Canada, you can buy a home with as little as 5% down. While putting down more can save you on mortgage insurance, it’s not a dealbreaker if you’re short on cash.
Myth #2: Banks Have the Best Rates
Spoiler: Mortgage agents often access better rates because we work with multiple lenders, including those that aren’t available to the public. Banks are great for chequing accounts, but for mortgages? Brokers are where it’s at.
Myth #3: Pre-Approval Guarantees a Mortgage
Not quite. Pre-approval is a crucial first step, but it’s not a promise. Your lender will still verify your income, credit, and debt before issuing a final approval.
Myth #4: Fixed Rates Are Always Better
It depends! Fixed rates offer stability, while variable rates often save money in the long run. The best choice depends on your financial goals and risk tolerance.
Myth #5: You Can’t Break a Mortgage
You can, but it may come with penalties. An agent can help you weigh the costs and benefits of breaking your mortgage to switch to a better deal.
Ready to debunk these myths? Lets have a conversation about your financial goals in 2025.
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