Hi :)
If you're planning a move from Toronto to Moncton, the mortgage part can feel like the most confusing piece of the puzzle. I remember it well. When my family made the move in 2023, I was juggling a home to sell, a home to buy, a new province, and a lot of questions about how financing would actually work. So here's the plain-language guide I wish someone had handed me.
Start with the down payment rules
In Canada, the minimum down payment depends on the purchase price. According to the Financial Consumer Agency of Canada, it's 5% of the first $500,000, plus 10% of the portion between $500,000 and $1.5 million. At $1.5 million and up, it's 20%. If you put down less than 20%, you'll typically need mortgage loan insurance, which protects the lender (not you) and is usually added to your mortgage or paid up front.
Why does this matter for relocators? Many Toronto families are selling a home with a lot of equity, so a bigger down payment is often possible in Moncton. A bigger down payment generally means a smaller mortgage and less interest over time.
Know about the stress test
Banks and other federally regulated lenders have to check that you could still afford your payments at a higher "qualifying rate." That rate is the greater of 5.25% or your contract rate plus 2%. It applies whether or not your mortgage is insured. It isn’t the rate you actually pay. It’s just a safety check on your budget.
My tip: ask your lender or mortgage broker to run your numbers at the qualifying rate early, so you know your real budget before you fall in love with a house.
Get pre-approved before you start touring
A pre-approval tells you roughly how much you can borrow and often holds a rate for a set period. It's not a guarantee, but it makes you a much stronger buyer. If you're still in Toronto, you can often do this remotely, and it makes your first Moncton house-hunting trip far more productive.
Think about timing: sell first, or buy first?
This is the question I get most from relocating families. You've got a few options:
Sell your Toronto home first, then buy in Moncton. It's simpler and cleaner, but you may need temporary housing.
Buy first, then sell. It can feel more comfortable, but you'll need to be sure you can carry two homes for a while.
Line up closing dates as closely as possible. Some families aim for this, but it takes good coordination between both sides.
Your lender can explain what's possible for your situation, including bridge financing. Bridge financing is short-term borrowing that covers the gap between two closings. It isn't right for everyone, so talk through the costs first.
Don't forget the extra costs
Your down payment isn't the only money due on closing. Budget for legal fees, a home inspection, land transfer tax, and moving costs. I broke down many of these in my post on the real cost of moving from Toronto to Moncton, and I'd suggest reading it alongside this one.
Shop around, and ask about lenders
Lenders that aren't federally regulated, like some credit unions, can have different rules, so it's worth asking about options. A mortgage broker can compare several lenders for you. I always encourage my clients to talk with more than one source before they decide.
A few quick questions to ask your lender
What's my budget at the qualifying rate?
How long will my pre-approval rate hold?
What are the prepayment options and penalties?
How does my income, especially if it's remote or self-employed, get assessed?
What happens if my closing dates don't line up?
A note from me
I've lived in both Toronto and Moncton, and I know how different the two markets feel. The mortgage basics are the same across the country, but the way they play out on a real purchase depends on your family, your equity, and your timeline. I'm not a mortgage professional, so please speak with your lender or broker for advice on your numbers. What I can do is help you understand what's happening in the Moncton market and how to plan the move so it feels manageable.
If you're thinking about relocating, or upsizing within the Moncton area, I'd love to chat. No pressure, just an honest conversation. Reach out any time at rena@renasammut.com.
Sources: Financial Consumer Agency of Canada (down payments and the mortgage stress test) and the Office of the Superintendent of Financial Institutions (minimum qualifying rate).
Tags: Moncton mortgage, relocating to Moncton, Toronto to Moncton move, mortgage stress test Canada, down payment Canada, mortgage pre-approval, Moncton real estate, moving to New Brunswick, upsizing family, Moncton realtor
