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How to refinance and make your mortgage work harder
Lower your rate, consolidate debt, or unlock equity—without guessing. This guide breaks down when refinancing makes sense (and when it doesn’t).
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How to get pre-approved for a mortgage
This step-by-step guide breaks down exactly what lenders look for, what paperwork you’ll need, and how to lock in a rate with confidence, so you can shop smart, move fast, and make winning offers.
Step 1
Check your credit score
Think of your credit score as your mortgage wingman: the stronger it is, the better the deal it can help you land.
Why is it important?
Having a good credit rating shows lenders you’re trustworthy with money—and that comes with perks.
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Lower interest rates
Better credit usually means better rates, which can save you thousands over time. -
Higher approval odds
Lenders are more likely to say yes (and faster) when your credit is strong. -
More borrowing power
A good score can help you qualify for a larger mortgage or better terms. -
More choice and flexibility
Strong credit opens the door to more lenders, mortgage types, and features.​ -
Lower overall costs
Weaker credit can mean higher rates, tighter rules, or extra fees. Good credit helps you avoid all that.
What’s the score to aim for?
In most cases, lenders like to see a score of around 680 from at least one borrower (or guarantor), especially if you’re putting less than 20% down.
Got 20% or more for your down payment?
Great news—lenders can be more flexible, and that 680 benchmark isn’t always required.
Not sure where your score stands?
You can check it through Canada’s two credit bureaus: Equifax Canada and TransUnion Canada.
Once you’ve got it, give it a quick once-over as catching errors early can save you a lot of stress (and money) later
Step 2
Figure out your budget
​When it comes to budgeting, there are two numbers that matter:
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What you can buy
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What you can comfortably live with
This is because being house-rich and cash-poor means a great home…but no money left over for fun. So, keep in mind, the price you qualify for on paper can look very different from the price that actually fits your day-to-day life.
That’s where pre-qualification comes in.
It’s a great starting point to see what you can comfortably afford. This is not just the price of the home, but the monthly payments once you factor in property taxes, utilities, insurance, condo fees, other bills, and yes, still saving for the future.
Setting a good budget does double duty.
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It helps you narrow in on a realistic home price.
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Shows you where your money’s going—highlighting gaps, wiggle room, or chances to save more down the road.
Once mortgage payments enter the picture, that clarity becomes your secret superpower.
In short: budget smart now, enjoy your home later—and still have room for life outside your front door.
Step 3
Line up your down payment
Once you’ve nailed down your budget, you’ll have a clear picture of the home price you’re aiming for. This makes it much easier to estimate how much you’ll need to put down and start saving with purpose.
In a perfect world, the gold standard down payment is 20%.
But let’s be real: in today’s market, that’s not always doable.
The good news? You don’t need 20% to get in the door.
Down payment under 20%?
You’ll need to purchase default mortgage insurance, and the minimum down payment is 5%. For example, on a $500,000 home, that’s:​
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$100,000 if you’re putting 20% down
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$25,000 if you’re going the insured route.
Buying above $500,000?
Here’s how the minimum works:
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5% on the first $500,000
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10% on the remaining amount
And if your purchase price tips over $1 million, the rules tighten—you’ll need a full 20% down, no exceptions.
Where can the down payment come from?
Your down payment doesn’t have to live under your mattress. Common sources include:
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Personal savings (hello, savings accounts)
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FHSAs & RRSPs: maxing out these savings accounts can mean thousands more towards your down payment. Thanks to the federal Home Buyers’ Plan, first-time buyers use up to $35,000 per person ($70,000 per couple) from RRSPs.
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A gift from an immediate family member (yes, generous relatives count)
Quick tip: If your down payment comes from a TFSA or RRSP, lenders typically want 90 days of statements to show where the funds came from. Gifted funds usually skip the waiting period.
Rules can vary, so it’s always smart to check in with a Mortgage Expert to confirm what qualifies and how to structure your down payment the smoothest way possible.
The sneaky extras: plan for closing costs
Once your down payment is locked in, there’s one more piece to plan for: closing costs. These are the final expenses that show up when your home purchase crosses the finish line—and they’re separate from your down payment.
As a general rule, you’ll want to set aside about 1–4% of the purchase price.
This covers things like legal fees, title insurance, and land transfer taxes (where applicable). Not the most exciting part of buying a home, but definitely a necessary one.
The good news? No guesswork required.
Our Mortgage Experts can help you estimate these costs ahead of time, so there are no last-minute surprises—just keys in hand and a smooth move-in day.
Step 4
Find the right mortgage option for you
Mortgages come with a lot of choices—fixed or variable, short term or long, payment options, penalties…and that’s before you even look at lenders. It’s no wonder it can feel like decision overload.
Here’s the thing: the rate is important, but it’s only one piece of the puzzle.
The right mortgage also depends on flexibility, risk tolerance, payment style, and your long-term plans.
With access to hundreds of lending institutions , our Mortgage Experts know the landscape and can help match you with a mortgage that actually fits your life—not just today, but down the road.
And unlike banks, our brokers work for you, not one lender. That means unbiased advice, more options, and competitive rates—all at no cost. Just expert guidance from someone whose only goal is helping you get into a home you love, with a mortgage that makes sense.
Step 5
Get your mortgage documents ready
When you apply for a mortgage, there’s a stack of paperwork that almost always comes along for the ride. Think of it as the financial version of a passport check before takeoff.
You’ll typically need to provide:
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Government-issued photo ID
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Recent pay stubs (usually one month) for everyone on the application
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A letter of employment confirming your role and income
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Your last two years of CRA tax filings (plus financials if you’re incorporated)
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Three months of bank statements
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Proof of your down payment (minimum 5%)
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Explanations for any large or unusual deposits or withdrawals that aren’t regular pay
Having these ready upfront can make the process faster, smoother, and far less “where did I save that file?” We’re here to guide you through exactly what’s needed and why, every step of the way.
Step 6
Get pre-approved
If you want the smoothest path to a mortgage win, mortgage pre-approval is your secret weapon.
Working with a Mortgage Expert to get pre-approved for a mortgage helps ensure you’re matched with the right mortgage for you—from the rate to the term to the fine print that actually matters.
Why mortgage pre-approval is worth it:
1. It confirms your real budget.
Not just what you qualify for, but what makes sense for your cash flow. That clarity helps you and your realtor focus on homes you can actually afford.
2. It locks in your rate.
Most mortgage pre-approvals secure a rate for up to 120 days, shielding you from surprise rate hikes while you shop. (Instant peace of mind.) Tip: be sure to ask how long yours is valid.
3. It makes you look strong to sellers.
In competitive markets, a pre-approval signals that financing is unlikely to be an issue—which can make your offer stand out.
How to protect your mortgage pre-approval
While final approval happens once the property is submitted to the lender, you can help keep your pre-approval solid by:
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Avoiding additional credit checks
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Not applying for new credit, close accounts, or making big purchases
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Being ready to explain any unusual deposits—lenders love a clear paper trail
Think of mortgage pre-approval as doing your homework before the exam. It’s not fun—but it puts you in a much better position.
Step 7
Let the house hunt begin
You made it!
With your down payment lined up and your mortgage pre-approval secured, you’re officially cleared to start the fun part: house hunting.
If you don’t already have a realtor, your Mortgage Expert can point you toward someone great—think of it as assembling your home-buying dream team.
Smart closing tips (future you will thank you):
1. Treat your credit like fine china.
Keep debt low and your credit score clean—these habits will carry you well beyond this purchase.
​2. Get mortgage pre-approval
Remember it's your secret weapon
3. Stick to your budget.
You worked hard to set it. Don’t let a very tempting pool derail the plan.
4. Leave room for the extras.
Closing costs and additional fees are part of the deal—build them into your purchase price.
5. Ask all the questions.
If something feels confusing or uncomfortable, speak up. That’s exactly why your broker and realtor are there.
Frequently asked questions
If your credit score is accurate, but does not meet the minimum requirements, you will want to look at your current debt. Home ownership is an incredible investment, but it is also costly. Fortunately, there are a number of things you can do to improve your credit score as well as your future financial success, including:
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Paying your bills in full and on time. If you cannot afford the full amount, try paying at least the minimum required as shown on your monthly statement.
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Paying off your debts (such as loans, credit cards, lines of credit, etc.) as quickly as possible. Work on paying the ones with the smallest amount owing first and work your way towards the larger amounts.
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Staying within the limit on your credit cards and try to keep your balances as low as possible.
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Reducing the number of credit card or loan applications you submit.
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There is also the option of going with an Alternative Lender (or B Lender) if you are struggling with credit issues. A Dominion Mortgage Professional can help review your credit score and provide you with options for your mortgage needs.
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