There’s a lot of mortgage advice out there—some of it helpful, but a lot of it outdated, oversimplified, or just plain wrong. With the market constantly shifting and lending rules evolving, it’s easy for old myths to stick around long after they should’ve disappeared. So, let’s break down "five of the most common mortgage myths" and what’s actually true today.
Myth #1: You need 20% down to buy a home
This one refuses to die.
In reality, you *don’t* need 20% down — far from it. In Canada, you can purchase a home with **as little as 5% down** if the property is under $500,000. For homes above that price point, the minimum down payment simply scales, but it still doesn’t jump to 20%. Yes, putting less than 20% down means you’ll pay mortgage insurance. But for many buyers, especially first‑timers, that cost is a strategic trade-off that allows them to enter the market sooner instead of waiting years to save a larger down payment.
Myth #2: Your bank is the best place to get a mortgage
It feels convenient to walk into your bank and assume they’ll give you the best deal. But banks can only offer their own products, and that limits your options. A mortgage broker, on the other hand, can compare "dozens of lenders": major banks, credit unions, monoline lenders, and specialty lenders. That means more flexibility, more choice, and often better terms tailored to your financial situation and long‑term goals.
Myth #3: The lowest rate is always the best mortgage
A low rate looks great on paper, but it doesn’t tell the whole story. Some ultra‑low rates come with restrictive conditions:
- Harsh penalties
- Limited prepayment privileges
- No ability to port your mortgage
- Tight rules around refinancing or breaking the term
The best mortgage isn’t just the lowest rate—it’s the one that aligns with your lifestyle, future plans, and financial strategy.
Myth #4: You have to wait until your term is up to refinance
Many homeowners assume they’re locked in until their term ends. Not true. You can refinance early. There may be a penalty, but in situations like consolidating high‑interest debt, accessing equity for renovations, or restructuring your finances, the long‑term savings can outweigh that cost. In some cases, waiting until the term ends actually costs more.
Myth #5: Renewing with your current lender is the easiest and smartest move
Renewing with your existing lender is definitely easy—but “easy” doesn’t mean “best.” Lenders often reserve their most competitive rates for new customers, not existing ones. That means blindly renewing could leave money on the table. Renewal time is one of the best opportunities to shop around, compare options, and negotiate from a position of strength.
So Who Should You Call?
If you want clarity instead of confusion, and real guidance instead of outdated myths, work with someone who lives and breathes mortgages every day. In fact, for expert advice, personalized strategies, and access to a wide range of lenders, reach out to our highly recommended Principal Mortgage Broker Rodney Schunker (Lic. M12000165) at Kingdom Mortgages Inc., Brokerage #13608.
Rodney Schunker
416‑697‑6423
rschunker@kingdommortgages.ca
Rodney is known for being exceptionally professional, patient, and committed to helping clients understand every step of the process. He'll cut through the noise so you can make a confident and informed decisions. Give Rodney a call, tell him Eric & Gino sent you!
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