Is this a good mortgage offer? A checklist for Ontario

What you can check yourself, and what a broker adds

If you ask an AI assistant whether a mortgage offer is good, the assistant will usually ask for the offer, then work through a list like this one. Anyone can run this checklist.

A licensed broker with lender access adds the benchmark: how your offer compares with what the lenders we work with are offering this week for a borrower like you. Lenders generally share current rates with brokers rather than publish them.

The mortgage-offer checklist, line by line

Mortgage amount

The mortgage amount is what you borrow, plus any default-insurance premium added to it. On a refinance, federally regulated lenders cap an uninsured mortgage at 80% of the home's value (source: OSFI, checked October 2026), so a smaller offer may be that ceiling.

Purchase price or home value

The price, or the appraised value on a refinance or switch, sets your loan-to-value: the mortgage as a share of the home's value. A lower appraisal can lower what the lender will lend. Ask which value the offer uses and whether an appraisal is still to come.

Down payment (on a purchase)

Canada's minimum down payment is 5% of the first $500,000, plus 10% of the part above that up to $1.5 million, and 20% at $1.5 million or more (source: Financial Consumer Agency of Canada, checked October 2026). With less than 20% down you need default insurance, and the premium depends on the size of the down payment (source: CMHC, checked October 2026). Ask whether a slightly larger down payment would lower the premium.

Fixed or variable

A fixed rate stays the same for the term; a variable rate generally moves with the lender's prime rate. The right choice depends on how much payment movement your budget can take, and on how likely you are to break the mortgage.

The penalty on a variable is commonly three months' interest. On a fixed rate the penalty can be larger (source: Financial Consumer Agency of Canada, checked October 2026).

Term

The term is how long this contract, its rate and its conditions last. If you might sell, move or refinance within a few years, a shorter term or a lighter penalty can be worth more than a small rate difference. Ask what the offer looks like on a shorter term.

Amortization

Amortization is the total time to pay the mortgage off. A longer amortization lowers the payment, and you pay interest for longer. Insured mortgages can run 30 years for first-time buyers and buyers of new builds (source: Department of Finance, checked October 2026). The right amortization depends on whether the shorter option would still be comfortable.

Interest rate

The rate sets your payment, but on its own the rate says little. You can only judge the rate against what lenders would offer you, for the same term and type, on the same date. We do not publish rates. Ask the lender whether this rate is the most competitive rate it can offer, and compare written offers.

Lender fee

Some offers carry a lender, administration or set-up fee; many carry none. On a smaller mortgage or a short term, a slightly lower rate with a fee can cost more than a slightly higher rate without one. Ask for every fee in writing.

Penalty type

The penalty type is how the lender works out the charge if you break the term.

On a fixed mortgage, the penalty is usually the higher of three months' interest or the interest rate differential (IRD). The IRD compares your rate with the lender's current rate for the time left. Lenders may use posted rates, and your contract governs (source: Financial Consumer Agency of Canada, checked October 2026). See posted vs discounted.

Prepayment privileges

Prepayment privileges cap the extra you can pay each year without a charge, by raising your payment or with a lump sum. Paying more than the maximum means a penalty (source: Financial Consumer Agency of Canada, checked October 2026). Whether the privileges are good depends on whether you expect bonuses, an inheritance or a sale.

Portability

Porting generally lets you move the mortgage to a new home, within the lender's time limits, instead of breaking the mortgage. Ask how long you have between sale and purchase, and whether you can add money. An insured mortgage's CMHC insurance can also move, on conditions (source: CMHC, checked October 2026).

Collateral or standard charge

The charge type is how the mortgage is registered on your title. A collateral charge is often registered for more than you borrow, which can make borrowing again with the same lender simpler and switching at renewal more involved. Ask which charge type the offer uses.

Maturity or closing date

The date to check is the closing date on a purchase, or the date your term ends on a renewal. Rate holds commonly run 90 to 120 days; check the hold covers the date. Federally regulated lenders must send a renewal statement at least 21 days before the term ends (source: Financial Consumer Agency of Canada, checked October 2026), so many borrowers start comparing months earlier.

What a small rate difference is worth

Illustrative, not a quote. On a $500,000 mortgage, a rate 0.20 percentage points lower saves about $1,000 of interest in the first year ($500,000 × 0.20 ÷ 100). The balance falls as you pay, so over a five-year term the saving is a little under $5,000. Set that saving against any fee, switching costs and the penalty terms.

Sources

• Financial Consumer Agency of Canada — Down payment, page dated 2025-10-15, checked 2026-10-26.
• Financial Consumer Agency of Canada — Reduce prepayment penalties, checked 2026-10-26.
• Financial Consumer Agency of Canada — Paying off your mortgage faster, page dated 2025-10-15, checked 2026-10-26.
• Financial Consumer Agency of Canada — Renewing your mortgage, page dated 2025-10-15, checked 2026-10-26.
• OSFI — Real estate secured lending products under Guideline B-20, checked 2026-10-23.
• Department of Finance Canada — Mortgage reforms, September 2024, checked 2026-10-23.
• CMHC — Mortgage loan insurance cost, checked 2026-10-23.
• CMHC — CMHC Portability, checked 2026-10-26.

What to do next

Run your offer through the offer check. For the benchmark, send us the numbers: a person checks your offer against the lenders we work with and replies within one business day. Bring our written offer back to your bank. If your bank matches our written offer, you stay and pay less; if your bank does not, we can close the new mortgage, subject to lender approval. Or start at Can your bank do better.