Getting a mortgage is one of the most significant financial commitments most people make, but it’s also one of the most misunderstood. Misinformation is everywhere, and when you’re a first-time home buyer in Orillia or refinancing in Barrie, believing the wrong thing can cost you thousands.
At The Mortgage Coach Greater Simcoe, we believe in honest advice with no fluff. Our licensed agents live and work in your communities, whether it’s Wasaga Beach, Innisfil, Midland, or Collingwood, and we’re here to make sure you don’t fall into the trap of common mortgage myths.
Let’s bust the biggest ones and help you save.
Myth #1: “The Bank Will Always Give Me the Best Rate”
Truth
Banks often only display their posted rates, which are rarely the best available deals.
While your bank may offer convenience, they aren’t obligated to find you the most competitive rate. Mortgage brokers (like us!) can shop across dozens of lenders to find the best mortgage rates in Simcoe County, tailored to your situation.
Real Scenario
A couple in Orillia came to us after getting a rate quote from their bank. We found them a rate 0.75% lower, saving them over $10,000 over their 5-year term.
Myth #2: “Pre-Approval Means I’m Guaranteed a Mortgage”
Truth
A pre-approval is not a final approval.
Obtaining mortgage pre-approval in Ontario is a significant first step, as it provides a rate hold and a rough idea of your budget. But it’s based on limited information. Final approval is granted later, after income verification, credit checks, and a property review.
Tip from the TMC Team
Always have your broker review your file before making an offer. We’ve helped many Simcoe buyers avoid surprises that could have cost them their dream home.
Myth #3: “I Need 20% Down to Buy a Home”
Truth
You can buy a home with as little as 5% down in Canada.
Many first-time homebuyers in Simcoe delay their purchase unnecessarily because they think a 20% down payment is required. In reality:
Home Price Range | Minimum Down Payment |
Up to $500,000 | 5% |
$500,000 – $999,999 | 5% on the first $500K + 10% after |
$1,000,000+ | 20% |
Yes, mortgage default insurance (CMHC) applies under 20% down, but it often makes homeownership possible sooner than expected.
Myth #4: “If I Have Bad Credit, I Can’t Get a Mortgage”
Truth
There are lenders and solutions for clients with bruised credit.
At TMC Greater Simcoe, we’ve worked with many clients in Barrie, Innisfil, and Collingwood who thought their dream of owning a home was out of reach. But:
- We work with alternative and B lenders who look beyond just credit scores.
- We offer co-signing, debt consolidation, and credit coaching to help you qualify.
- We assist with mortgage renewals in Simcoe County, even if your credit has declined since you initially purchased your home.
Pro Tip
Don’t assume you won’t qualify. Get a confidential review with one of our mortgage coaches.
Myth #5: “Fixed-Rate Mortgages Are Always Safer Than Variable”
Truth
Both have their place, and the right choice depends on you.
Fixed-rate mortgages offer stability, but that security often comes at a premium. In some market conditions, variable rates save homeowners thousands.
We help clients:
- Analyze risk tolerance
- Understand rate trends
- Compare fixed vs. variable projections
- Lock in hybrid options if desired
Example
A client in Wasaga Beach switched to a variable rate in 2021 and saved over $3,200 compared to the fixed rate they were previously offered.
Myth #6: “I Should Renew My Mortgage with the Same Lender”
Truth
Loyalty can be expensive if you don’t shop around.
When your mortgage term expires, your existing lender will likely send you a renewal letter with a new interest rate. Many people sign it without question, and that’s a costly mistake.
At renewal, you have options to:
- Shop rates across multiple lenders
- Renegotiate your term, amortization, or payment frequency.
- Consolidate high-interest debt into your mortgage.
Refinancing in Orillia? TMC Greater Simcoe has helped hundreds of homeowners reduce their monthly costs and reset their financial goals at renewal time.
Myth #7: “The Lowest Rate Is Always the Best Deal”
Truth
The lowest rate might come with hidden conditions.
It’s easy to focus on the rate, but mortgages come with fine print that matters a great deal. A rock-bottom rate may come with:
- High penalties for breaking your mortgage
- No prepayment privileges
- Limited porting flexibility
- Restricted lender options
Case Study
A family relocating from Toronto to Innisfil had a mortgage with a low rate, but couldn’t port it to their new home without hefty penalties. We helped them switch and restructure with minimal cost.
Myth #8: “Using a Mortgage Broker Costs Me More”
Truth
In most cases, using a mortgage broker costs you nothing.
We’re compensated by the lender, not the client, for most standard mortgages. That means:
- No broker fee for typical residential purchases or renewals
- Access to wholesale rates
- Unbiased advice based on what works for you, not what pays the most
And if fees ever apply (such as for private or commercial deals), we’ll walk you through them up front. No surprises.
Myth #9: “All Mortgage Brokers Are the Same”
Truth
Experience, local knowledge, and service matter.
The TMC Greater Simcoe team brings deep expertise in Simcoe County, from the housing market in Orillia to waterfront properties in Collingwood. We’re not just mortgage agents, we’re mortgage coaches.
Meet our team:
- Craig Brunsdon, Team Leader – strategic and experienced
- Sandro Lombardo, Level 2 Agent – sharp on renewals and investment strategies
- Jason Boucher is passionate about helping clients close deals
- Lindsay Daly, praised for diligence and care in every file
- Plus, support from Joel Bowman, Trevor Hough, and our admin team
We’re a local, licensed, and transparent company. That’s the difference.
Myth #10: “Online Rate Comparison Tools Give You All the Info You Need”
Truth
Rate aggregators don’t tell the whole story.
Sites like Ratehub or bank portals can show you generic numbers, but they don’t:
- Assess your credit, income, or goals
- Tell you about hidden fees or restrictions
- Explain the differences between lenders
- Represent you during the mortgage process
At TMC Greater Simcoe, we begin with your real-world situation and provide you with practical answers.
Quick Reference Table: Mortgage Myths vs. Reality
Mortgage Myth | The Reality |
Banks always offer the best rates | Brokers can find lower, more flexible options |
Pre-approval means guaranteed approval | Final approval depends on full underwriting |
You need 20% down to buy | You can buy with as little as 5% down |
Bad credit means no mortgage | Alternative solutions are available |
Fixed rates are always better | Depends on goals, market, and tolerance |
Renewing with the same lender is safest | It can cost you if you don’t shop around |
The lowest rate is always the best | Delicate print matters, penalties, and conditions can cost more |
Brokers cost extra | Most often, they’re paid by the lender |
All brokers are the same | Local experience and service make a big difference |
Online tools tell you everything you need | Only a human can tailor a mortgage to your exact life situation |
The Cost of Believing the Wrong Thing
When it comes to mortgages, what you don’t know can cost you. Whether you’re a first-time home buyer in Simcoe, refinancing in Orillia, or just looking for a trusted mortgage team near you, busting these myths is the first step toward saving money and making better decisions.