Mortgage Questions, Answered
What is a mortgage pre-approval?
A pre-approval reviews your income, credit, down payment, and debts to help estimate a suitable purchase budget before you make an offer.
When should I start reviewing my mortgage renewal?
Start several months before your lender deadline so you have time to compare rates, terms, payments, and features.
When can refinancing make sense?
Refinancing may help with home equity access, debt consolidation, payment changes, or a new mortgage strategy. Review costs and prepayment penalties first.
How much down payment do I need in Canada?
For an owner-occupied home priced at $500,000 or less, the minimum is generally 5%. From $500,000 to under $1.5 million, it is generally 5% of the first $500,000 plus 10% of the portion above $500,000. Homes priced at $1.5 million or more generally require at least 20% down and are not eligible for mortgage loan insurance.
Do I need mortgage loan insurance?
If your down payment is under 20%, mortgage loan insurance is usually required. It protects the lender, not the borrower, and its premium is commonly added to the mortgage. Eligibility and premiums depend on the lender and insurer.
Can I use a 30-year amortization?
For insured mortgages, 30-year amortizations may be available to first-time buyers and buyers of new builds, subject to lender and insurer requirements.
Does a pre-approval guarantee my mortgage?
No. A pre-approval helps with planning, but final approval depends on verifying your information, the property, the appraisal, lender policy, and your offer terms.
What closing costs should BC buyers plan for?
Budget beyond the down payment for property transfer tax where applicable, legal fees, inspection and appraisal costs, moving expenses, and adjustments. The exact costs depend on the property and transaction.
This information is general education for British Columbia and Canadian borrowers. Mortgage rules, lender policies, qualification results, and available programs can change.
