Navigating today’s housing market in Durham Region means staying informed and asking the right questions. Whether you’re a first time buyer, an investor, or planning to refinance, I’ve helped clients across Durham Region secure great terms by focusing on five essential inquiries. These questions will give you clarity on costs, flexibility, and long term affordability so you can move forward with confidence.

1. Which Mortgage Type Aligns with My Goals?

Every mortgage falls into one of three categories, fixed rate, variable rate, or a combination of the two. A fixed rate keeps your interest and payments the same for your entire term, which makes budgeting simple. A variable rate often starts lower but can rise or fall as the Bank of Canada adjusts its key rate. A combination mortgage lets you split part of your loan at a fixed rate and part at a variable rate, so you can balance stability with potential savings. Think about how long you plan to stay in your home and how comfortable you are with possible rate changes before you decide.

2. What Is the Total Cost, Posted Rate versus APR?

Lenders often advertise discounted rates front and center, but that doesn’t tell the whole story. The posted rate is the lender’s undiscounted list rate. Your discounted rate is what you actually pay each month. The annual percentage rate or APR reflects the true cost over your term by including most lender fees such as application or administration charges. Comparing APRs across lenders gives you a clear picture of which offer really costs you the least in the long run.

3. Which Fees and Penalties Should I Expect?

Beyond interest there are a variety of fees that can add hundreds or even thousands to your closing costs or penalties if you make changes later. You may face application fees, appraisal and legal fees, property transfer taxes, and discharge fees when you pay off or transfer your mortgage. If you break your mortgage early or pay more than your allowed prepayment limit the lender will charge a penalty based on the posted rate. Ask for a full fee schedule in writing so you know exactly what you’ll owe now and if you need to make changes later.

4. How Much Can I Afford, Stress Test and Ratios?

Canadian rules require a mandatory stress test to make sure you could handle higher interest rates in the future. Lenders also review two key ratios, your gross debt service ratio which compares housing costs to income, and your total debt service ratio which compares all debts to income. By running your income, down payment, and debts through these measures I can tell you the maximum mortgage you qualify for and suggest a payment level that keeps you comfortable. This way you avoid stretching your budget too thin if rates climb or unexpected expenses arise.

5. What Are My Prepayment Options and Limits?

If you receive extra cash from a bonus, gift, or savings you’ll want to use it to pay down your mortgage faster. Many lenders allow an annual lump sum payment of around ten to twenty percent of your original mortgage amount and let you increase your regular payments by up to twenty five percent. Exceed those limits and you may face a penalty calculated using the posted rate. I help clients map out five and ten year plans so they can see how extra contributions accelerate equity growth and reduce interest costs.

Take the Next Step with Confidence

By covering these five critical questions with your Durham Region mortgage broker or lender you’ll gain transparency on rates, fees, and flexibility, making your decision process smoother and more secure. Ready to explore current best mortgage rates in Canada and find the ideal solution for your situation?