Niagara Falls Mortgage Broker

Niagara Falls at a glance

Benchmark price

$565,000

Property tax rate (approx.)

1.22%

Minimum down at benchmark

$31,500

Ontario LTT at benchmark

$7,775

Most people know Niagara Falls for the gorge and Clifton Hill. Most homeowners know it for something quieter: long blocks of post-war houses in Stamford, family subdivisions toward Mount Carmel and Warm Springs, the village feel of Chippawa along the Welland River, and the working streets around Lundy's Lane. The composite benchmark is about $565,000, a little above St. Catharines.

The residential property tax rate is approximately 1.22%, about $6,893 a year or $574 a month at the benchmark. That is one of the lower rates among Niagara's cities, but it is still an estimate: the bill depends on your MPAC assessment and this year's rates, so confirm with the City of Niagara Falls.

Where people buy, and what they buy

• Chippawa, at the south end of the city where the Welland River meets the Niagara, mixes older village homes with newer streets. Buyers here are often families who want a short drive to the QEW and the Parkway.
• Stamford and the north end hold much of the established housing stock: bungalows, storey-and-a-halfs and two-storeys from the 1950s to the 1980s. These are frequent first-home purchases and frequent candidates for a basement suite.
• Mount Carmel and Warm Springs are newer subdivisions in the west and south, with larger detached homes and townhouses that tend to sit above the benchmark.
• Lundy's Lane and the streets around it combine older homes, commercial frontage and the motel strip, which matters if you are looking at anything with mixed or tourist zoning.

Because the city also has GO train service, some buyers commute toward Burlington and Toronto. Our GTA commuter guide covers selling in the city and buying here, including bridge financing.

Hospitality, casino and tipped income

Niagara Falls is the centre of the region's tourism economy, so many borrowers here are paid in shifts, tips, commissions and seasonal contracts. These are the files that go sideways with a lender that does not know the local economy. The common issues:

• Tips and gratuities generally count only when they are declared and show on your T4 or tax return. Lenders typically average the last two years of declared income, so under-reporting tips lowers what you can borrow.
• Variable hours at hotels, restaurants and the casinos are usually averaged over two years too, using notices of assessment and year-to-date pay stubs. A strong current year rarely overrides a weak prior year at an A-lender.
• Seasonal work can be used when there is a clear history of returning to the same employer or industry each season, sometimes with employment insurance income documented.
• Probation after a job change can delay approval with some lenders and not others, which is exactly why comparing lenders matters.

The full breakdown is in our hospitality and tipped income guide. If you run your own tour, cleaning or contracting business, read the self-employed guide; if your credit took a hit in a slow season, the B-lender page explains the alternative route and its disclosed fees.

Vacation rentals and investment properties

Short-term rentals are licensed in Niagara Falls, and the rules on where they are allowed and how they are licensed change over time, so check the current municipal licensing by-law before you buy with that plan. On the financing side, A-lenders generally will not count short-term rental income to help you qualify. Some B-lenders and credit unions will, usually with a 12 to 24 month operating history. A rental property bought with 20% or more down is priced at uninsured rates, currently around 4.54% for a 5-year fixed (indicative, OAC). See our cottage and short-term rental guide and run long-term rents through the rental cash-flow calculator.

The full cost at the $565,000 benchmark

Run your own numbers in the payment and closing cost calculator. Weighing nearby options? Compare Fort Erie, Thorold and Niagara-on-the-Lake.