Buying or refinancing a home can feel like learning a new language. From pre-approvals to fixed rates, terms and amortizations, it’s easy to feel overwhelmed—especially if you’re diving into the process during the summer when your focus is split between family trips, BBQs, and cottage weekends.
At Capital Mortgages, we hear all kinds of questions from clients across Ottawa. Some are practical, some are personal, and some are the kind people hesitate to ask because they think they should already know the answer.
This blog is here to change that.
Whether you’re a first-time buyer or refinancing your fifth property, this Summer Q&A Guide covers the questions you’re probably wondering but haven’t yet asked.
“How do I know if now is the right time to get a mortgage?”
There’s no one-size-fits-all answer here—but there is a right time for you. Factors to consider:
- Your current income and job stability
- How much you’ve saved for a down payment
- Your long-term housing plans
- The state of your credit score
- What the current interest rates look like
🔍 Capital Mortgages can help you assess whether the timing aligns with your financial goals, not just market hype.
“Do I really need a mortgage pre-approval before house hunting?”
Yes. Think of pre-approval as your financial passport. It gives you:
- A realistic budget to shop within
- Credibility with sellers
- Protection from sudden rate hikes (for up to 120 days)
It’s not mandatory to browse listings, but if you’re serious about buying this fall, getting pre-approved this summer is your smartest move.
“What’s the difference between a mortgage broker and a bank?”
This one gets asked a lot. Here’s the breakdown:
| Mortgage Broker (e.g. Capital Mortgages) | Bank |
| Shops multiple lenders for best rates | Only offers their own products |
| Flexible lending options, even with lower credit | May reject applicants with non-traditional income |
| Personalized service and advice | Limited flexibility and fewer customization options |
Brokers are independent and work for you, not for a specific bank.
“Can I get a mortgage if I’m self-employed?”
Absolutely. Being self-employed doesn’t disqualify you—it just means lenders may ask for more documentation.
You’ll typically need:
- 2 years of tax returns
- Business financials
- Proof of consistent income
At Capital Mortgages, we work with lenders who specialize in self-employed applicants. We’ll help present your finances in the strongest light possible.
“What is a mortgage stress test—and do I need to pass it?”
Yes, everyone applying for a mortgage in Canada must pass the stress test.
The stress test ensures you could still afford your mortgage if interest rates rise. Lenders calculate your ability to pay using a higher interest rate (usually the greater of 5.25% or your contract rate + 2%).
It’s frustrating, but it protects buyers from overextending in unpredictable markets—especially relevant in today’s climate.
“What’s the difference between fixed and variable rates?”
- Fixed Rate: Your interest rate stays the same for the entire term (e.g., 5 years). This offers predictability and stability.
- Variable Rate: The rate fluctuates with the market. You could pay less when rates drop, but more if they rise.
📈 In 2025, many buyers are leaning toward fixed rates for security, but the right choice depends on your financial tolerance and goals.
“What kind of credit score do I need?”
A score of 680 or higher generally gets you access to the best mortgage products.
If your score is below 600, you may still qualify through an alternative lender—but expect higher rates or stricter terms.
Either way, don’t panic. Our brokers will help you understand your credit report and offer strategies to improve your score if needed.
“What are closing costs—and how much should I budget for them?”
Closing costs are additional fees due at the time your purchase or refinance is finalized. These can include:
- Legal fees
- Land transfer tax
- Title insurance
- Appraisal fees
- Home inspection
- Prepaid property taxes or utilities
🧮 As a rule of thumb, budget 1.5% to 4% of your home’s purchase price for closing costs.
“I already have a mortgage—should I be considering a refinance?”
That depends. Refinancing might be a good idea if you want to:
- Lower your interest rate
- Tap into your home equity
- Consolidate debt
- Change your mortgage term or type
Not sure if refinancing makes sense right now? Ask us for a free mortgage review. We’ll run the numbers and walk you through the pros and cons, no pressure.
“Is it better to work with a local Ottawa broker?”
Yes—and here’s why:
🏙️ Ottawa’s real estate market has its own unique rhythms. A local broker:
- Understands Ottawa neighbourhood pricing
- Knows the seasonal trends (like fall inventory surges)
- Can recommend local professionals like real estate agents, lawyers, and appraisers
At Capital Mortgages, we live and work right here in the city, so we know the local market inside and out.
“Is there a place I can go to get answers without feeling embarrassed?”
Absolutely. That’s exactly why we created our Mortgage FAQ page.
It covers:
- Mortgage basics
- Pre-approval tips
- Common first-time buyer questions
- Advice for renewals and refinancing
And if you don’t find your question there? Just ask us directly. We’ve heard it all, and we’re here to help—no judgment, ever.
Final Word: Asking Questions = Smart Mortgaging
Don’t let confusion or fear stop you from taking the next step toward your dream home or financial goals. Asking “silly” questions is how you get smart answers—and better results.
Whether you’re buying your first home, refinancing, or just beginning to explore your options, Capital Mortgages is your go-to team for support, clarity, and straight answers.
☀️ Let’s make this summer the season you finally feel mortgage-confident.
Ready to chat?
📞 Call 613-228-3888
📧 Email info@capitalmortgages.com
💻 Or visit our full Mortgage FAQ page