Top 10 Mortgage Questions Asked by BC Homebuyers Mortgage Broker Penticton

Clear Answers to the Most Asked Mortgage Questions in BC

Top 10 Mortgage questions answered.

Introduction

Are you thinking about buying a home or refinancing in British Columbia?  Mortgages can be confusing. Here are answers to the 10 top questions people in BC ask about mortgages.

1. What is the current mortgage rate in BC?

Rates change often. Most banks in BC offer between 4% and 6% for fixed-rate mortgages. Check with your lender for today’s rates.  Contact us today we will be happy to discuss interest rates with you.

2. How much down payment do I need for a home in BC?

You need at least 5% down for most homes. If your home costs over $500,000, you will be required to make a down payment of 5% on the first $500,000 plus 10% on the amount over $500,000 as long as the purchase price is under $1,500,000.  If the price exceeds $1,500,000 then a down payment of 20% is required.  Also note that any down payment under 20% will require Mortgage Insurance.

3. How does the mortgage approval process work in BC?

You first contact your mortgage broker like Stephen Aitcheson Mortgage Solutions and discuss your financial situation with them.  They will provide you with a list of documents required and help you complete an application. They check your income, debts, credit score, and savings. They will find you the right mortgage to meet your needs.  A mortgage broker will negotiate with the lender on your behalf.  If you meet the lender’s requirements, you get approved.

4. What is the difference between fixed and variable rate mortgages?

A fixed rate stays the same for your term of your mortgage which can be from 1-10 years the most common terms are 3-5 years.  A variable rate will go up or down based on the Bank of Canada rate.  Fixed rates are stable and your payment will not change, but at most times are higher than variable rates.

5. What is the First-Time Home Buyer Incentive in BC?

The government helps first-time buyers by sharing the cost. You borrow less and pay back the incentive when you sell.

6. How do I calculate my mortgage payments?

Use a mortgage calculator online. Enter your loan amount, rate, and term. It will show you your payment.

7. What are the closing costs for buying a home in BC?

Closing costs include lawyer fees, land transfer tax, property appraisal and inspections. Budget 2% to 4% of the home price.

8. Can I get a mortgage with bad credit in BC?

It is more difficult and you may pay a higher interest rate, but it is not impossible. Some lenders offer mortgages to people with low credit scores, it is best have this discussion upfront with you mortgage broker so they can work with you to find a mortgage solution with a lender that has this type of mortgage product.

9. How much can I afford to borrow for a mortgage in BC?

Most lenders let you borrow up to 4-5 times your yearly income. Your debt and expenses lower the amount.

10. What documents do I need to apply for a mortgage in BC?

You will need proof of income (document will vary depending on the type of income you receive), ID, recent bank statements, and details about your debts and assets.  Learn about our process at Stephen Aitcheson Mortgage Solutions

Conclusion

Buying a home in BC is a big step and knowing the answers to the top 10 questions ask by BC home buyers is a great start. It can be complicated to find the right mortgage, navigate the many lenders available to you.  Let us at Stephen Aitcheson Mortgage Solutions help you find the right solution with ease.  Knowing the basics about mortgages can help you make smarter choices and get the home you want, I am always available to answer your questions. For answers to these questions and many more check out our services in Penticton, Summerland and Kelowna.