Mortgage Loans: Best Rates, Refinancing & First-Time Buyer Tips (USA & Canada)
Updated 2025-09-11 • This guide targets readers in the United States and Canada.
Learn how to shop mortgage rates, qualify as a first-time buyer, and decide when to refinance in the U.S. and Canada.
How mortgages work
Mortgages are secured loans backed by real estate. In the U.S., common products include conventional, FHA, VA, and USDA. In Canada, borrowers choose between fixed and variable rates from banks and credit unions, often with 5-year terms and 25-year amortization.
Rates & pricing
Rates track broader bond markets. Your credit score, down payment, property type, and debt ratios (DTI/GDS/TDS) affect pricing. Private mortgage insurance (PMI) in the U.S. and mortgage default insurance (e.g., CMHC) in Canada apply at lower down payments.
Regional notes
Property taxes and closing costs vary dramatically. Some provinces offer first-time buyer rebates; several U.S. states and cities offer down-payment assistance.
How to qualify
- Target a credit score of 680+ (higher for best pricing).
- Keep DTI under 43% (U.S.) or pass GDS/TDS thresholds (Canada).
- Document income (tax returns, pay stubs, NOA/T4, bank statements).
Refinancing & choosing terms
Refinance when you can lower the rate, shorten the term, or tap equity for renovations—after calculating break-even costs. Weigh 30-year fixed vs. shorter terms (U.S.) and renewal strategies in Canada.
Money-saving tips
- Boost the down payment to reduce insurance and interest.
- Pay biweekly to save on interest over time.
- Avoid big purchases before underwriting—keep credit stable.