Starting with Pre-Approval
Whether you are purchasing for the first time or you’ve been through it before, I can help organize the process and make it go smoothly. Many clients first contact me to get a pre-approval, where I calculate based on standard lending guidelines how much mortgage you can afford. It’s always best if you contact me prior to your realtor, so we can get your budget organized and get an idea of payment which will help narrow down your search.
I’ll also organize your income and down payment documents ahead of time so we can make a complete, efficient application that the lenders will approve in short order. In Vancouver’s market, having your financing sorted out before you start looking gives you a real advantage when competing against other buyers.
The Stress Test - and How to Navigate It
Every mortgage in Canada is subject to the mortgage stress test, which means you need to qualify at a rate higher than your actual contract rate. This affects how much you can borrow, and it catches a lot of first-time buyers off guard.
I help you understand exactly where you stand against the stress test and figure out which lenders and mortgage structures give you the most room. Sometimes that means looking at a longer amortization to lower your monthly payment, or working with lenders that have slightly more flexible qualifying criteria.
Down Payment Rules in BC
In Canada, the minimum down payment is 5% for homes up to $500,000, and then scales up for homes above that. On a home priced at $1M or more, you need a minimum of 20% down - and in Vancouver, most homes fall into that range. Here’s what you need to know:
- Under $500K: minimum 5% down, mortgage is CMHC-insured
- $500K to $999,999: 5% on the first $500K, 10% on the remainder
- $1M and over: minimum 20% down, no mortgage insurance required
- Down payment can come from savings, RRSP Home Buyer’s Plan, gifts from family, or FHSA
If you’re a first-time buyer, the First Home Savings Account (FHSA) lets you contribute up to $8,000/year and withdraw it tax-free for a qualifying home purchase. Combined with the RRSP Home Buyer’s Plan (up to $60,000 per person), there are some real tools available to help with your down payment. I’ll walk you through what applies to your situation.
Why Working with a Broker Beats Going to Your Bank
When you go to your bank, they show you their products. When you work with me, I have access to 20+ lenders including the big banks, credit unions, trust companies, and monoline lenders that only work through brokers. Those monolines often have rates the banks won’t advertise publicly. Because I also know which lenders will approve quickly and which ones will not, I can save you valuable time in the process.
My services in a purchase situation go further than just great rates. I’m paid by the lender once your mortgage closes, not by you. There’s no fee to work with me on a standard purchase mortgage, and I can bring a large array of mortgage options to the table that you simply won’t get walking into a single branch.