Before You Sign Anything: 7 Mortgage Truths Most People in Ontario Don’t Know

Whether you're buying your first home in Sarnia, upgrading in Lambton County, refinancing in Corunna, or planning ahead in Petrolia, Wyoming, Chatham, or London — understanding how mortgages actually work can save you thousands.

And here’s the honest truth:

Most people make mortgage decisions based on rate alone.

But mortgages are strategy — not just numbers.

Let’s break down what you should actually know.

Mortgage Basics (Without the Overwhelm)

A mortgage is a loan used to buy or refinance real estate. You repay it over time through regular payments that include:

• Principal – the amount you borrow
• Interest – what the lender charges
• Amortization – the timeline to pay it off

Early in your mortgage, more of your payment goes toward interest. Over time, more goes toward principal.

How your mortgage is structured affects how fast you build equity and how much interest you pay long-term.

That’s why details matter.

Not All Mortgages Are Created Equal

There are a few common types of mortgages in Ontario — and choosing the right one depends on your life, not headlines.

Fixed-Rate Mortgages
Your rate stays the same for the term. Great for stability and predictable payments.

Variable / Adjustable Mortgages
Rates fluctuate with the market. They often start lower and offer more flexibility — especially if you think you may sell or refinance before the term ends.

One important note: variable mortgages typically carry a 3-month interest penalty if broken early, while fixed-rate penalties can sometimes be significantly higher.

Flexibility has value.

You Don’t Always Need 20% Down

You can purchase with as little as 5% down in many cases — and you do not have to be a first-time buyer.

If the purchase price is over $500,000, different down payment tiers apply, but the key is understanding the structure.

Some buyers can even use borrowed funds for down payment if they qualify.

Waiting years to hit 20% isn’t always the smartest move — especially in markets like Sarnia and Lambton County, where home prices are often more accessible than larger cities.

Strategy > waiting blindly.

Qualification Isn’t Just About Credit

Lenders look at:

• Credit score
• Income stability
• Debt-to-income ratio
• Employment history

But here’s what many people don’t realize:

Different lenders view income differently. Self-employed? Commission income? U.S. income? There are options — but you need to know where to look.

That’s where experience makes a difference.

Refinancing Isn’t Just for Emergencies

Refinancing allows you to access up to 80% of your home’s value in Ontario.

Why would someone refinance?

• Lower their rate
• Improve monthly cash flow
• Consolidate high-interest debt
• Access equity for renovations
• Prepare for retirement
• Re-structure their mortgage for flexibility

It’s not about “resetting” your mortgage — it’s about repositioning it.

But it only makes sense if the math works. We always calculate the break-even point before making a move.

Small Adjustments Can Save Big Money

Switching to accelerated payments can shave years off your mortgage.

Even small extra payments — like $100 a month — can reduce thousands in interest over time.

A HELOC can provide low-cost access to equity when structured properly — especially important before retirement, when qualifying becomes harder.

The key is planning before you need it.

Why This Matters Right Now

With rates having fluctuated over the past few years, many people in Ontario are unsure:

• Should I buy now?
• Should I refinance?
• Should I renew or switch lenders?
• Is my bank offering the best option?
• Am I structured properly for the future?

Your bank can offer you one solution.

I look at your full financial picture and compare multiple lenders to find what actually fits your life.

It’s not about pushing a product.

It’s about building a mortgage that works for you long term.