https://www.nbc.ca/personal/mortgages/calculators/rent-or-buy.html

Look for a lender that offers the lowest rate you can get for the mortgage terms you require.

what if your mortgage application is denied?

You will want to find out the reason why your application was declined. There could be the following issues:

Missing information.
Your credit history.
Insufficient income.
Too much debt.

If your income was deemed insufficient, another lender may look at your income differently than this lender. This could happen if you're self-employed or have some other non-traditional work arrangements.

If you have too much debt, you may have to restructure it so that payments are lower or wait until you reduce debt.

If it's your credit history, keep in mind that it takes time to improve it. But there also may have been a mistake or the agency did not update your file.

It may also help to build up your savings and increase the down payment.

First, research how much can you afford to borrow.

We've done some research comparing posted mortgage rates. Use our table as a guide and remember to do some research on your own.

Updated September 2, 2022.

Every lender has a mortgage affordability calculator on its website. When you do your research,

Make sure it's a Canadian calculator.
Try more than one calculator. This is a important and complex decision and you may get different results, depending on who designed the tool. You will not not for sure how much money you can actually borrow until you discuss it with a lender and go through the application.

https://www.cmhc-schl.gc.ca/en/finance-and-investing/mortgage-loan-insurance/homebuying-calculators/affordability-calculator

choose a lender and

apply for a mortgage

request your credit reports and credit scores from both credit bureaus

This is a good time to request your free credit report and credit score from both credit bureaus. You should know what the lenders will see when they consult your credit record when you apply for a mortgage.

If there are errors in your credit history, you'll need to write to the credit bureaus to correct them - it takes time.

The calculator will estimate how much you will be able to borrow, or the price you can afford, based on the following inputs:

Location and type of property (house or condo)
Your down payment
Other debts you have, like student debt, credit card debt and personal loans, or and monthly payments you make on them
Your monthly income and expenses
Key features you expect for your mortgage
Even if the calculator does not prompt you, remember that you'll need to set aside money for transaction costs (and possibly moving / renovation).

You can also play with the calculator and see what would happen to the amount you can borrow if:

You had a bit more down payment
You paid off more of your other debts
You changed your payment schedule, for example from once per month to every two weeks
Interest rates were higher or lower.

What documents do i need to get a mortgage?

As you complete your mortgage application, the lender will want to verify who you are, that you are a resident of Canada and that you can meet the payment obligation of a mortgage. So the lender will want to see:

Government-issued identification.
Your personal details, such as date of birth, marital status and dependents.
Contact information for your employers in the last 3 years.
Proof of address (and address history if you moved in the last 3 years).
Proof of income. This could be your employer letter, pay stub, bank statement showing direct deposit of your salary, or income tax returns - usually for the last couple of years. If you're self-employed, income tax returns will be used.
Financial statements to demonstrate the value of your other assets - like a car, other property, and savings & investments. Assets are things of value you own.
Details of any liabilities, like bank loans, car loans / leases, student debt, and credit card debt (current statements showing outstanding amounts are required). Liabilities is another word for any amounts you owe.
Estimated value of the home you're buying (it's called 'appriaisal').
Estimate of your housing expenses (property tax, annual condo fee, utility costs, etc.)
Proof that you have the funds to make a down payment.
Permission for the lender to access your current credit report. Lenders want to see a minimum credit score of 650-680. Some will accept 620. The higher the score, the better.
Your SIN. This is optional. Lenders like to use the SIN to make sure they are accessing the right credit report. They can use other personal information to verify.

use a mortgage calculator

first time homebuyers

The Government of Canada, and some provincial governments, offer support to people who are buying a home for the first time. For example,

First Time Home Buyers’ Tax Credit. If you and your home qualify, this $5,000 federal tax credit can reduce your tax bill by $750 in the year you bought the house / condo. It's a non-refundable tax credit (it can reduce tax you'd otherwise have to pay, but you won't get cash back). Some provinces also have first time home buyers credits.
GST/HST New Housing Rebate. If you buy a new or substantially renovated home from a builder, you may qualify for a refund of a portion of the federal and, in some provinces, provincial sales tax on the price of the home. The rebate is on the GST portion of the tax.
Home Buyers’ Plan. You can withdraw up to $35,000 from your RRSP (registered retirement savings plan) to use as down payment.

Municipal governments also offer support to first-time buyers, for example, a rebate on land transfer tax. You can receive a rebate in British Columbia, Prince Edward Island, and Ontario (where in the City of Toronto you are also eligible for rebate on the city’s land transfer tax, in addition to the provincial rebate).

Lenders sometimes make special features available to first-time homebuyers. These are not a substitute for attractive terms, but they may be useful to you as a new homeowner. Examples: discounts at partner retailers, travel rewards, higher interest on savings accounts, discounts on insurance and chequing accounts, and a cash back.

REMINDER: KEY FEATURES OF A MORTGAGE

Rate (interest in percent)

It's your cost of borrowing money. What determines the interest rate you'll pay on your mortgage?

Fixed - the rate will not change over the term of the mortgage.
Variable: Your payments will stay the same, but more or less of the payment amount will be applied to the principal of the mortgage as the interest rate you pay on the mortgage will adjust to changes in general interest rates.

Term
It's the length of time you commit to an interest rate and other payment terms.

It can be anywhere from 6 months to 10 years. 5 years is common.

Payment terms

You and your lender will agree on how often you'll make payments (weekly, biweekly, or monthly) that match your amortization.

Amortization is the number of years used to calculate your mortgage payment. Standard amortization is 25 years. That means that you're expected to pay your principal back in full in 25 years.
The interest rate you were quoted for the term you've chosen is then used to calculate your interest payments over the term of your mortgage.
Amortization, term, rate, and payment frequency are balanced such that each payment amounts to the same amount of dollars (it's called a blended payment because it combines interest and principal repayment). This results in the following: initially, a big portion of your payments will be interest. Over time, principal repayment will become a bigger portion of each payment.
You'll start making payments shortly after you receive the money.
'Open' mortgages allow you to make larger principal payments from time to time (prepay) without fees - but they have higher interest rates. "Closed' mortgages do not give you such flexibility.

Next: Close Mortgage

LENDER'S PERSPECTIVE

The amount you'll be able to borrow depends on how much the lender will be prepared to lend you. Lenders want to make sure they get repaid.

Lenders use 2 affordability rules to determine how much you can afford to borrow:

1. Your monthly housing costs should be less than 32% of your gross monthly income.

2. Your total debt costs should be less than 40% of your gross monthly income.

This includes all loans, credit cards, and purchases on credit.

Lenders also have to run a 'stress test' on the mortgage affordability calculations using a higher mortgage rate than that they are prepared to offer you. That higher rate is set for all lenders by the Bank of Canada and can change from time to time.

Lenders will check your credit scores and credit histories with both credit bureaus.

YOUR PERSPECTIVE

The amount you borrow also depends on you:

How much debt you are comfortable with.
How long you want be burdened by mortgage repayment.

The higher the price of home, the higher your financial obligations - not just the amount of mortgage and down payment, but also higher ongoing costs, such as the annual property taxes.

For the same price of home, the bigger your down payment, the less mortgage debt you'll need to take, the shorter it will take to repay it.

Mortgage application

While preparing the application, you'll discuss with the lender the term and payment terms of your loan. They will be specified in the application.

After you fill out and submit your application and required documents, the lender will take a few days to approve your loan. When they get back to you, you'll know how much money you can borrow to pay for the home you want to buy and at what interest rate - and therefore what your mortgage payment will be.

This is the time to read your contract carefully and make sure you understand all terms and conditions.

Mortgage pre-approval

When you are pre-approved, the lender will send you a letter that states that you qualify for a mortgage loan up to a certain amount, at a stated interest rate, for a certain type of property.

This is based on the information you have provided and subject to certain conditions.

Pre-approval has 4 benefits for you:

Simplified application process, often entirely online.
Lender's commitment to hold the interest rate for 3 months.
More certainty. Knowing the estimate of the size of mortgage you can get, you can assess the price of a home you can afford.
In a competitive real estate market, sellers prefer offers from buyers who have a pre-approved mortgage. It speeds up the transaction and reduces the risk that you, the buyer, would have to back out of it because you did not get the required mortgage.

There is no disadvantage to getting pre-approval. But you need to realize that it's not the same as the final mortgage approval, which expresses lender's commitment to all terms of the mortgage. Approval is:

For a specific loan on a specific property for a specific amount.
Based on the lender's review of a complete loan application and supporting documents.

The more thorough the lender's pre-approval process, the more confident you can be in the final approval. But a number of things can happen between the pre-approval and closing date when you sign the mortgage contract.

The appraisal for the home you're buying is lower than what you agreed to pay the seller. To trouble shoot this you can either increase your down payment or renegotiate the price.
You applied for another loan, which increases the amount of debt you carry. Your debt-to-income ratio is higher than what the lender first calculated (unless your income increased too) and gives the lender the right to deny your mortgage application.
You changed jobs between pre-approval and final application. This can normally be sorted out by advising the lender. But it could be a problem if your income is lower or if you're now self-employed.
Mortgage rules changed.
Your credit score was materially lowered, for example because you missed some payments, have been maxing out your credit card, and took out a new loan.

https://tools.td.com/mortgage-affordability-calculator

choose a mortgage lender

Many lenders compete for your business in the mortgage market.

They post indicative interest rates to advertise their services. The rate you'll pay and the mortgage terms (key features) ill be negotiated once the lender knows who you are, where you live, and what property you're buying.

1. You can use posted rates to make a short list of lenders with whom you'll negotiate your mortgage.

One way to get started is to consult an aggregator website, like www.ratehub.ca or www.ratespy.com.
Add your main bank to the list - because you do other business with it and it knows you, you may be able to negotiate a good rate.
Online-only lenders (whether smaller independent or an arms of a Big 5 bank) advertise low rates and ability to sign up for a mortgage in minutes with as little paperwork as possible. Still, do your research - it's the biggest purchase in your life.

2. You can use a mortgage broker to help you find a lender. 

A broker finds you a lender who offers most favourable mortgage rate and terms, and will negotiate with the lender on your behalf.
You don't pay for the service - broker commission is paid by the lender who wins your business. Experts say that some high-risk borrowers (those with high debt or those who are self-employed) may be charged an additional broker fee of $2,000 - $9,000, which increases the closing cost (check out what those are on the CLOSE page).
Because of the large volumes of business they do with certain lenders, some mortgage brokers may offer you a lower rate than available through other channels.
You can find a mortgage broker through a referral by family or friends. You can also do an online search. Many brokers are local businesses so they are known in the community.
Just as with any financial service providers, make sure to research your local brokers and interview a few.
Brokers are licensed provincially. Some brokers are members of the Canadian Association of Accredited Mortgage Professionals. You will see the letters AMC next to their name on their business card. This stands for Accredited Mortgage Professional.