If you’re looking for a mortgage in Toronto, you’re certainly not alone. With one of the most dynamic real estate markets in the country, Toronto continues to be a hub for homeowners, investors, and newcomers alike. But whether you’re buying your first home, upgrading to a larger space, or refinancing your existing mortgage, it helps to understand how the Toronto mortgage landscape works — and how to make the most of your options.
This guide will walk you through what to expect, what to watch out for, and how to make sure you’re getting a mortgage that fits your needs, budget, and long-term goals.
Why Toronto Mortgages Are Unique
Toronto’s real estate market doesn’t always follow national trends. Prices here tend to be higher, competition can be fierce, and regulations may shift depending on local demand and provincial policies. Mortgage lending in Toronto also reflects this complexity, with a wider variety of lending products available — from major banks and credit unions to alternative lenders and private funding options.
Types of Mortgages Available in Toronto
When applying for a mortgage in Toronto, you’ll typically choose from the following types:
- Fixed-rate mortgages – Ideal if you want stable monthly payments and protection from rising interest rates.
- Variable-rate mortgages – Often come with lower initial rates, but the interest can fluctuate based on the market.
- Open mortgages – Allow you to pay off your mortgage early without penalties, though interest rates may be higher.
- Closed mortgages – Offer lower rates but come with limits on prepayment.
Toronto homebuyers can also take advantage of specific products for self-employed individuals, first-time buyers, or those with non-traditional credit histories. If you fall into one of these categories, working with a mortgage professional can help ensure you’re matched with the right lender.
How Much Do You Need for a Down Payment in Toronto?
In Toronto, where average home prices are well above the national average, your down payment requirement will vary based on the purchase price. Here’s a quick breakdown:
- 5% on the first $500,000
- 10% on any amount between $500,000 and $999,999
- 20% for homes priced at $1 million or more
For example, if you’re purchasing a $950,000 condo, your minimum down payment would be $70,000. You’ll also need to account for closing costs, land transfer taxes, and possibly CMHC mortgage insurance if your down payment is under 20%.
Refinancing Options in Toronto
Toronto homeowners often consider refinancing to tap into home equity, lower their interest rates, or consolidate debt. With property values remaining strong in much of the city, refinancing can be a smart way to manage cash flow or make home improvements.
Not sure if refinancing makes sense for you? Visit our mortgage application page to explore your options — it’s fast, easy, and completely free.
Choosing the Right Toronto Mortgage Lender
In Toronto, you can choose from a wide network of lenders — including big banks, credit unions, monoline lenders, and private lenders. Each comes with its own requirements and benefits. For example:
- Big banks often offer competitive rates but have stricter approval criteria.
- Credit unions may be more flexible, especially with income types and credit history.
- Private lenders can be a solution for those who don’t qualify with traditional lenders but usually come with higher rates.
The challenge is knowing where to start. That’s where we come in.
Why Work With The Local Broker?
At The Local Broker, we help homebuyers and homeowners across Toronto and the GTA find mortgage solutions tailored to their financial situations. We’re based in Guelph, but we work with clients throughout Ontario — including Toronto, Mississauga, Brampton, Scarborough, North York, and beyond.
We’re fully independent, which means we’re not tied to any specific lender. Instead, we work with more than 40 banks, credit unions, and private lenders to match you with the best available offer.
Plus, we’re happy to work around your schedule — evenings, weekends, online or in-person. You won’t be stuck waiting in a bank lineup or missing work just to ask a question. Our process is fast, friendly, and completely transparent.
If you’re dealing with a unique financial situation — such as self-employment or recent credit challenges — we’ll still do our best to help. You may also want to read our article on getting a mortgage while in a consumer proposal if that applies to you.
Final Thoughts on Getting a Toronto Mortgage
A Toronto mortgage is a big commitment, but it doesn’t have to be overwhelming. The key is understanding your options and working with someone who can guide you through the process, whether you’re buying a home or refinancing.
Ready to take the next step? Start your mortgage application online here, or contact us to ask a question, get a quote, or book a time to chat.
