Mortgage Blog
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Your Mortgage Journey in 5 Steps
September 25, 2026 | Posted by: Daryl Johnson
Buying a home is the biggest purchase most of us ever make, and the mortgage process can feel like a maze. Here is the whole journey in five steps, the same way I walk clients through it.
Step 1: Getting Started
Before you look at a single listing, know your numbers. What do you earn, what do you owe, what have you saved? Pull it together early, because surprises in step 3 are a lot less fun.
This is also when it pays to talk to a broker instead of just your bank. I have access to 57 lenders, and different lenders treat income, down payments, and property types differently. The My Mortgage Planner app (free, no credit check) can give you a fast read on what you can afford in about 60 seconds.
Step 2: Choosing a Mortgage
Fixed or variable? What term length? Open or closed? These choices shape your payment and your flexibility for years.
There is no universally right answer. A fixed rate buys certainty. A variable rate buys a lower starting point with some risk. Shorter terms keep your options open; longer terms lock in stability. The right choice depends on your job security, your plans, and how well you sleep at night.
Step 3: Qualifying
This is where lenders run your numbers through two key ratios:
- GDS (Gross Debt Service): your housing costs divided by your gross income. Lenders generally want this under 39%.
- TDS (Total Debt Service): all your debt payments, including housing, divided by gross income. Generally needs to be under 44%.
You will also face the mortgage stress test, which qualifies you at a higher rate than you will actually pay. Have your documents ready: pay stubs, tax returns, bank statements. Self-employed? The paperwork is heavier, but very doable with the right preparation.
Step 4: Closing Costs
The down payment is not the only cheque you write. Budget **1.5% to 4% of the purchase price** for closing costs: land transfer tax, legal fees, title insurance, and adjustments.
On a $500,000 home, that is $7,500 to $20,000 on top of your down payment. First-time buyers in Ontario also get land transfer tax rebates that take some of the sting out. Plan for this early so closing day has no surprises.
Step 5: Moving Day
The finish line. Do your final walkthrough, confirm your home insurance is in place (your lender requires it), and make sure your lawyer has everything needed to move the funds. Then get the keys and start the next chapter.
The short version
Get your numbers straight, compare more than one lender, understand what you qualify for, budget past the down payment, and protect closing day. Do those five things and the maze turns into a straight line.
Thinking about buying in Grey Bruce, the Peninsula, or Simcoe? Let us map out your five steps together.
Daryl Johnson, Mortgage Agent Level 2 | Mortgage Architects | September 2026