I'm Theeban Pathmanathan, a licensed Mortgage Agent Level 2 with FIN Mortgage – Dominion Lending Centres. I help buyers across Toronto, Scarborough, Markham and Durham Region get pre-approved, compare 50+ lenders and close with confidence, whether it's your first condo or your next family home.
Who a purchase mortgage is for
- First-time buyers who want to know exactly what they can afford before they start touring homes.
- Move-up buyers selling one home and buying another, who need the timing and financing to line up.
- Self-employed buyers and business owners whose income doesn't look "typical" on paper.
- Investors buying a rental or a second property.
- Newcomers to Canada building a credit history and settling in the GTA.
How a mortgage pre-approval works
A pre-approval is a lender's conditional review of your income, credit, debts and down payment. It tells you a realistic price range and usually comes with a rate hold, so you're protected if rates rise while you shop. It isn't a final approval: once you have an accepted offer, the lender still reviews the property and confirms your documents.
The stress test
Every buyer needs to qualify under the federal mortgage stress test. Lenders qualify you at the greater of your contract rate plus 2% or 5.25%. It doesn't change the rate you actually pay, but it does set how much you can borrow. Lenders also compare your housing costs, and your housing costs plus other debts, with your income. I run these numbers with you up front so there are no surprises. The affordability calculator applies the stress test for you.
Just as important is what feels comfortable. A pre-approval tells you the maximum; a good plan leaves room for savings, child care, a car and the unexpected.
Minimum down payment in Canada
- 5% of the first $500,000 of the purchase price
- 10% of the portion between $500,000 and $1,499,999
- 20% for homes priced at $1.5 million or more
With less than 20% down, mortgage default insurance (for example, from CMHC) is required, and the premium is added to your mortgage. Insured mortgages often come with sharper pricing because the lender's risk is lower, so the largest possible down payment isn't always the cheapest option.
First-time home buyer mortgages in Ontario
If this is your first home, there are real programs that can help. Let's make sure you use the ones you qualify for.
FHSA (First Home Savings Account)
You can contribute up to $8,000 a year, to a lifetime limit of $40,000. Contributions are tax-deductible, and qualifying withdrawals to buy your first home are tax-free.
RRSP Home Buyers' Plan (HBP)
You can withdraw up to $60,000 from your RRSPs toward your first home, and repay it over time. Couples buying together may each be able to use it. You can also combine the HBP with the FHSA.
30-year amortization
First-time buyers and buyers of newly built homes can qualify for a 30-year amortization on an insured mortgage. A longer amortization lowers your regular payment, though you pay more interest over the life of the loan. We'll weigh that trade-off together.
Land transfer tax rebates
Eligible first-time buyers in Ontario can receive a provincial land transfer tax refund of up to $4,000. Buying in the City of Toronto? You may also qualify for Toronto's municipal land transfer tax rebate of up to $4,475. Your real estate lawyer typically claims these at closing. Try the land transfer tax calculator to see what applies to your purchase. Program rules and limits change from time to time, so I confirm what applies to you when we review your file.
Documents you'll need
- Government-issued photo ID
- Recent pay stubs and an employment letter (salaried), or two years of T1 Generals and Notices of Assessment (self-employed)
- Proof of down payment: 90 days of bank or investment statements, or a signed gift letter
- Details of current debts, support payments and any properties you own
- Once you have an offer: the Agreement of Purchase and Sale and the MLS listing (plus the status certificate for a condo)
The process with Theeban
- Free consultation. A quick call to understand your goals, income, timeline and budget. It doesn't affect your credit.
- Apply and pre-approve. You complete a secure online application. I review your file and secure a rate hold.
- Shop 50+ lenders. I compare banks, credit unions and monoline lenders and explain the trade-offs: rate, prepayment privileges, penalties and portability. I can also run payment scenarios for specific homes, including property tax and condo fees.
- Close with confidence. Once your offer is accepted, I submit the property to the lender, which may order an appraisal. I coordinate with your realtor, lawyer and lender through closing and beyond.
Common purchase scenarios
- Buying your first condo in Toronto with 5% down and an FHSA.
- Upsizing in Durham: selling a townhome in Ajax and buying a detached home in Whitby, with bridge financing if the closing dates don't match.
- Self-employed buyer in Markham who writes off expenses and needs a lender that looks at the bigger picture. See self-employed mortgage options.
- A gift from family going toward the down payment.
- Buying pre-construction and planning for final financing at closing.
A local Toronto and Durham angle
Every part of the market works differently. Downtown Toronto and Scarborough have a lot of condos and townhomes, where condo fees and building status affect your approval. In Pickering, Ajax, Whitby and Oshawa, many buyers find more space for their budget and newer subdivisions, which often means new-build closings and longer timelines. With offices in Toronto and Pickering, I know these neighbourhoods and the lenders who are comfortable with them.
Why work with a mortgage agent?
Your bank can only offer its own products. I compare 50+ lenders for you. For most residential mortgages with qualified borrowers, there's no fee to you, because the lender pays the broker's compensation. If a file ever involves a fee, it's disclosed in writing up front.
Already own a home? See mortgage renewal and switching lenders, or use your equity toward your next purchase with a refinance or a second mortgage or HELOC. If the bank has said no, private mortgage solutions may bridge the gap.
Frequently asked questions
How long is a mortgage pre-approval good for?
Most lenders hold a pre-approval rate for 90 to 120 days. If it expires, we can usually renew it based on updated documents.
What is the minimum down payment in Ontario?
5% of the first $500,000, 10% of the portion from $500,000 to $1,499,999, and 20% on homes priced at $1.5 million or more.
Can I use my FHSA and the Home Buyers' Plan together?
Yes. Eligible first-time buyers can use both toward the same home, up to $40,000 from the FHSA and $60,000 from the HBP.
Can first-time buyers get a 30-year amortization?
Yes. First-time buyers and buyers of new builds may qualify for a 30-year amortization on an insured mortgage, subject to lender approval.
Does a pre-approval guarantee my mortgage?
No. It's conditional. The lender still has to approve the property and confirm your documents after you have an accepted offer.
What closing costs should I plan for?
Common costs include land transfer tax (Ontario, plus Toronto's municipal tax inside the city), legal fees and disbursements, title insurance, a home inspection, an appraisal if the lender asks for one, and adjustments for property tax or utilities. Many lenders also want to see that you have set aside about 1.5% of the price for closing costs.
Does it cost anything to work with you?
For most residential mortgages with qualified borrowers, no. The lender pays my compensation. Any fee is disclosed in writing up front.
This page is general information only and is not financial, legal or tax advice. All mortgages are subject to lender approval and qualification (O.A.C.). Rates, terms, programs and government rules change from time to time, so please speak with me about your own situation. Calculator results are estimates only and do not constitute a mortgage approval or offer. Theeban Pathmanathan, Mortgage Agent Level 2 (licence M14000189), FIN Mortgage – Dominion Lending Centres, brokerage licence #12825, independently owned and operated. Licensed by the Financial Services Regulatory Authority of Ontario (FSRA).