Mortgage Broker in Scarborough

Yes, the Toronto land transfer tax applies here

Scarborough has been part of the City of Toronto since amalgamation in 1998. For land transfer tax purposes it is Toronto, which means you pay the municipal tax as well as the provincial one.

This catches people constantly, and it catches them at the worst moment, because land transfer tax is paid in cash at closing and cannot be added to the mortgage. A buyer comparing a house near the Rouge with one just over the boundary in Pickering is comparing two different amounts of cash required, even at the same price.

First-time buyers do get both rebates, which softens it considerably: up to $4,000 on the provincial tax and up to $4,475 on the municipal one, so as much as $8,475. Your lawyer claims them at closing. Make sure they know your status early.

When we run your numbers, both taxes go in from the start, along with legal fees, title insurance and the adjustments. Finding out about the second tax during the closing week is a bad way to find out about it.

Basement suites, and what the rent is worth to you

A large share of Scarborough housing already has a second unit or the layout to support one, and that is one of the strongest levers available on a local application.

Lenders will generally count some of that rental income when they qualify you, which can lift your borrowing power meaningfully. How much they count varies enormously. One lender adds a percentage of the rent to your income. Another subtracts it from the property expenses instead. On identical numbers the two approaches can produce approvals that differ by a great deal, which is exactly why the file should go in front of more than one lender.

Lenders want the rent evidenced rather than described: a signed lease, or an appraiser opinion of market rent. And the legal status of the unit matters. A unit that complies and is properly permitted is straightforward. An unpermitted one is a narrower conversation, with some lenders declining to count the income at all.

If the plan is to rent the whole property rather than live in part of it, that is an investment purchase with different rules, covered on our investment property page.

If the suite does not exist yet. Since January 2025 there is an insured refinance that goes to ninety percent of the value the home will have once a self-contained unit is added, well above the eighty percent an ordinary refinance allows. The home must be worth under $2 million, you or a close relative must occupy one unit, the finished property can have at most four, and the suite has to meet zoning. It is the cheapest way to fund building one, and once it is legal and rented the income helps on the next application. Our refinancing page covers the details.

Financing older housing stock

Much of Scarborough was built in the post war decades, and older homes bring issues that newer subdivisions do not. None of them are dealbreakers on their own. All of them are better raised during the conditional period than after.

• Knob and tube wiring. The obstacle here is usually insurance rather than the lender. Many insurers decline it outright, and without insurance a lender cannot fund.
• Aluminum wiring. Often acceptable once an electrician has inspected and certified it, though it narrows the insurance market.
• Underground oil tanks. An environmental concern that lenders and insurers both take seriously. Removal and documentation are normally required.
• Roof, furnace and foundation. An appraiser flagging major deferred maintenance can lead to a lender holding back funds until the work is done.
• Asbestos and old plumbing. Less often a financing issue, frequently a cost issue. Worth pricing before you commit.

Talk to an insurance broker during the conditional period, not after it. Insurance being unavailable is one of the few things that stops a closing outright.

Buying something that needs work

A fair number of Scarborough purchases are of homes that are sound but dated, bought at a lower price precisely because of it. That can be a good trade, provided the renovation is financed properly.

A purchase plus improvements arrangement lets the lender approve you on what the home will be worth once the work is done, rather than what it is worth today. The catch is timing: the extra funds are released after the work has been completed and verified, not at closing. So you need to fund the work first, from savings or short term borrowing, and are reimbursed afterwards.

That means getting contractor quotes before you write the offer rather than after you own it. Our construction and renovation page explains how the draws work and what lenders need to see at each stage.

First-time buyers

Scarborough remains one of the more realistic entry points into Toronto ownership, and the programs are worth using in full.

• Both land transfer tax rebates, up to $8,475 together, claimed by your lawyer.
• The Home Buyers Plan, drawing from an RRSP toward a first home and repaying over time.
• The First Home Savings Account, where contributions are deductible and qualifying withdrawals are not taxed.
• A gifted down payment, which lenders accept with a signed gift letter and the funds traced in your account.

Get a proper pre-approval before you start looking, not after. Our first-time buyer page covers each program in detail and our pre-approval page explains what a real one involves.

How we work

Everything is handled online. You apply from home, upload documents through a secure portal, sign electronically and speak to us by phone or video whenever it suits, including evenings.

A single application reaches the full lender market: banks, credit unions, monoline lenders, alternative lenders and private funds. On a Scarborough file involving rental income, an older property or renovation funds, lender policy varies enough that where the file goes usually determines the answer.