Mortgage Myths Canadians Still Believe (And What’s Actually True)

There is a lot of mortgage advice floating around.

Some of it is helpful.

Some of it used to be true.

And some of it has been repeated so many times that people assume it must be true. 😅

The problem is, making a big financial decision based on outdated or incomplete information can affect everything from when you buy to how much you think you need to save.

So let’s clear up a few of the mortgage myths I hear most often.

Myth #1: You Need 20% Down to Buy a Home

Nope!

In Canada, depending on the purchase price and your situation, you may be able to purchase a home with less than 20% down.

A down payment below 20% will generally mean your mortgage requires mortgage default insurance, but that doesn't automatically make it a bad option.

In fact, waiting years to reach 20% isn't necessarily the right strategy for everyone.

The better question is:

👉 What down payment makes sense for my situation?

Myth #2: Your Bank Will Automatically Give You Its Best Mortgage

This is a big one.

It's easy to assume that because you've banked somewhere for 10 or 20 years, you're automatically getting the best mortgage option available to you.

But your bank can only offer you its own mortgage products.

A mortgage broker can look at options from multiple lenders and compare more than just the rate — including things like:

• terms

• penalties

• prepayment privileges

• portability

• flexibility

Sometimes your bank absolutely is the right choice.

But it's worth knowing that before you sign, rather than simply assuming it.

Myth #3: A Pre-Approval Means Your Mortgage Is Guaranteed

I wish this one were true!

A pre-approval is an incredibly useful step, but it is not a final mortgage approval.

Once you find a property, the lender still needs to review things such as the property itself and confirm that your financial situation still meets its requirements.

That's also why I tell clients not to make major financial changes between pre-approval and possession.

Buying a new vehicle the week before closing?

Maybe hold that thought. 😅

Myth #4: You Need Perfect Credit to Get a Mortgage

You don't.

Credit matters, but there isn't one magical credit score that determines whether you're allowed to own a home.

Lenders look at the whole financial picture, and there are different lenders and mortgage solutions for different situations.

If you've had some bumps with your credit, the answer may be:

👉 you qualify now,

or

👉 we build a plan so you can qualify later.

Either way, finding out where you actually stand is far more useful than assuming the answer is no.

Myth #5: The Lowest Rate Is Always the Best Mortgage

This might be my favorite mortgage myth to bust.

Because a super-low rate can look fantastic on an ad…

until you find out what comes with it.

A mortgage can have restrictions, different prepayment options, portability rules or a penalty structure that could matter a LOT if your life changes.

And life has a funny way of doing that.

The goal isn't simply to find the lowest number.

👉 It's to find the mortgage that makes the most sense for you.

Myth #6: You Should Wait Until You’re Ready to Buy Before Talking to a Broker

Please don't. 😂

You don't need a house picked out.

You don't need to be making an offer next week.

And you certainly don't need to have everything perfectly organized first.

Sometimes talking six months — or even a year — before you want to buy gives us time to work on things like:

• your credit

• your down payment

• debt

• income documentation

• your overall strategy

I'd much rather help you prepare early than meet you three days before you want to write an offer and discover something we could have fixed months ago.

The Truth? Mortgages Aren’t One-Size-Fits-All

That's probably the biggest takeaway from all of this.

Two people can have similar incomes, similar down payments and even be buying similarly priced homes…

and the right mortgage strategy for each of them can still be completely different.

That's why I don't love blanket mortgage advice.

Your finances, your plans and your life matter.

Not Sure What You've Heard Is Actually True?

Ask me.

Seriously.

There are no silly mortgage questions, and I'd much rather clear something up now than have you make a major financial decision based on something your cousin's neighbor told you at a barbecue. 😂

📩 Send me a message and we’ll figure out what fits best for you.

Serving Cranbrook and surrounding areas with honest advice, clear communication, and mortgage strategies that actually make sense.