By Tony Freanisco, Personal Finance Writer at BorrowNow.ca · Published August 18, 2026 · Last updated August 18, 2026
How mortgages work, the down payment and rules you need to know, and the types to compare: a plain-language guide for Canadian buyers and owners. A mortgage is a loan secured by your home, and for most Canadians it’s the largest loan they’ll ever take on, so understanding the essentials can save you thousands.
At a glance: fixed = locked, predictable rate · variable = moves with prime · HELOC = borrow against equity · private = alternative lenders · refinancing = replace your mortgage.
You borrow to buy a property and repay it, with interest, over a long period. This guide walks through the essentials, the rules that shape every Canadian mortgage, and links to a detailed guide for each mortgage type.
Each guide explains how it works, what it costs and who it suits:
When you buy a home, you pay a down payment up front and borrow the rest as a mortgage. You then repay that balance plus interest in regular payments over an amortization period, commonly 25 years, broken into shorter terms of one to five years that you renew until the mortgage is paid off. A few rules shape every Canadian mortgage:
The federal Financial Consumer Agency of Canada and CMHC publish neutral, detailed guidance on every step of getting a mortgage.
The rate is only part of the picture. A few habits help you borrow well and pay less over the life of your mortgage:
Rather than applying to lenders one at a time, BorrowNow matches you with mortgage options from licensed Canadian lenders, whether you’re buying your first home, renewing, refinancing or need an alternative lender. Tell us a little about what you need and compare what’s available to you.
At least 5% on the first $500,000 of the price, 10% on the portion above $500,000, and 20% on homes priced at $1 million or more. Under 20% down requires mortgage default insurance.
Lenders must confirm you could still afford your payments at a higher qualifying rate than the one you’re offered. It’s designed to make sure you can handle rate increases at renewal.
Amortization is the total time to pay off the mortgage (often 25 years). The term is the shorter contract length, usually one to five years, after which you renew at current rates until it’s paid off.
Fixed gives a locked rate and predictable payments; variable moves with prime and can be lower but riskier. The right choice depends on your budget and tolerance for rate changes.
Banks generally look for good credit, but alternative and private lenders consider lower scores at higher rates. A stronger score and larger down payment earn better terms.
BorrowNow isn’t a lender – it matches you with licensed Canadian mortgage lenders so you can compare options in one place instead of applying to each one separately.
Ready to compare mortgage options? Get matched with licensed Canadian mortgage lenders. No obligation, no pressure.
Dig into each mortgage type: fixed mortgages · variable mortgages · HELOC · private mortgages · mortgage refinancing · fixed vs variable
Disclaimer: BorrowNow.ca is a matching service, not a lender or mortgage broker. Rates, terms, and approval are set by licensed Canadian lenders and depend on your credit, income, down payment, and property. Mortgage rules summarized here reflect published federal guidance and can change; confirm current details with your lender or CMHC. Borrow only what you can afford to repay.
