Obtaining your first mortgage can feel daunting and overwhelming, especially during an already stressful time while trying to find your first home. We have partnered with our friend Paul Gazzola – Guelph Mortgage Architects to answer the most common questions we hear from first-time homebuyers.
Broker vs. Bank? What are the pros and cons?
A bank can only offer you their own mortgage products and rates. A mortgage broker can shop your application across many institutions. We work with 50+ lenders, including the Big Banks, Credit Unions, and Monoline lenders, to find the best fit for your situation. This can mean better rates, more flexible options, and solutions for clients who don’t fit a bank’s standard rules. Our services are completely free to you as we’re paid a commission by the lender only once your mortgage successfully closes.
Do I really need 5% of the purchase price for a down payment?
For most homes under $500,000, the minimum down payment is 5%. If the purchase price is higher, you’ll need 5% on the first $500,000 and 10% on the amount above that. Putting more down can reduce your mortgage insurance costs and monthly payments.
How can I come up with a downpayment?
Your down payment can come from a combination of savings, investments, a gift from an immediate family member, or the sale of another property. In some cases, if your debt ratios allow, you may also be able to borrow part of your down payment. During pre-approval, we review where your funds are coming from and explain lender guidelines so you know exactly what’s allowed before you start house hunting.
I work for myself, how do I get a mortgage?
Self-employed clients often have more options than they realize. We work with multiple lenders who offer programs that look at your income in different ways, not just what’s on your tax return. This can include using bank statements, year-to-date profit and loss statements, or other documentation to show your income. We explore all available options to find the solution that works best for your situation.
How far in advance do I need to get pre-approved?
You can get pre-approved up to 120 days before you plan to buy. This allows us to hold a rate for you and gives you a clear budget while you shop. Having a pre-approval in advance also shows sellers you’re serious, helps you move quickly when you find the right home, and ensures you know exactly what you can afford before making an offer.
Mortgages can feel complicated, but you don’t have to do it alone. We’re here to answer your questions, guide you through your options, and make the process smooth and straightforward.
About Paul Gazzola, Mortgage Architects
Paul Gazzola and his team are mortgage brokers and agents at Guelph Mortgage Architects. Their goal is to help clients secure financing tailored to their unique situation. With access to over 50 lenders, including major banks, credit unions, and monoline lenders, they provide the ability to compare mortgage options, rates, and terms to find the best fit. You’ll receive expert guidance at no cost, as their services are paid by the lender only once your mortgage successfully closes.
About Nick FitzGibbon & The Let’s Talk Real Estate Team
Nick FitzGibbon is a trusted Guelph realtor specializing in residential real estate in Guelph and Centre Wellington. With a data-driven approach and deep local market knowledge, Nick helps buyers and sellers make confident, informed decisions in changing market conditions.
Nick is the Team Lead of the Let’s Talk Real Estate Team, working alongside experienced real estate professionals including John Clark, Collette Aeschlimann, Dave Aubrey, Jessica Furmah, and Jeff Basso. Together, they provide comprehensive support throughout the buying and selling process across Guelph and Centre Wellington, ensuring every client receives personalized attention and expert guidance.
