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Fraser Valley Home Info

Getting a Mortgage in BC

Your step-by-step Guide to Financing your Home


One of the best ways to prepare for buying a home is by learning everything you can about mortgages.

To avoid wasting time, you must first understand the process and then work with a lender to get your loan.

For most people, buying a home is the biggest financial commitment of their lives. In this article, we'll get you ready to get a mortgage by going over all of the details of the mortgage process.

Assess Your Financial Situation

Before you start the mortgage process, it's important to assess your financial situation. The first step is determining what type of mortgage best fits your needs and lifestyle.

If you have low/no down payment: If this is the case for you, then it's likely that a government-backed insured mortgage will be required so that the lender can protect itself against potential defaults on their investment. In general these mortgages require higher interest rates and stricter requirements (such as high credit scores).

If your credit score is below 650: In some cases people with low credit scores may still qualify for a conventional loan but they could face higher interest rates than those with higher scores. It's best if possible to improve this by paying off debts or making regular payments on time before applying for any type of financing option such as buying or refinancing a home loan

Determine Your Budget

To determine your budget, you'll need to consider the following:

  • How much can I afford to spend on a house?

  • How much can I afford to spend on a mortgage?

  • How much can I afford to spend on a down payment?

  • What are my closing costs (the fees associated with buying and selling real estate)? These generally range from 2% to 6% of the purchase price of your home, depending on where in BC you live and what type of property you're purchasing. The seller typically pays their own set of closing costs while buyers pay both sets together as part of one lump sum at closing time. The exact amount depends on whether there are any pre-existing mortgages or liens registered against the property being sold; if there are no other encumbrances registered against it then expect those fees will be lower than usual due to less paperwork needing attention by lawyers and title companies before transfer can take place).

Choose a Mortgage Lender

When you're ready to find a lender, there are a few things you should know about the different types of lenders.

  • Banks: Banks are large financial institutions that have many branches throughout BC and Canada. They issue mortgages, credit cards, and other loans. They also offer investment advice for their client's portfolios.

  • Credit Unions: Credit unions are smaller than banks but offer similar services including mortgages as well as savings accounts and chequing accounts with low fees attached (no minimum balance required).

  • Mortgage Brokers: A mortgage broker works with many different lenders so they can match up borrowers with appropriate mortgage products from those lenders based on their needs/requirements such as monthly payment amount or length of term etc.

Get Pre-approved - how to qualify for a mortgage in BC 

If you're going to be buying a home in BC, it's important that you get pre-approved for a mortgage before you start looking at homes. This will ensure that you know exactly how much money is available from your bank so that when it comes time to make an offer on a property, there won't be any surprises.

Getting pre-approved means having the lender agree in principle (not guaranteed) to lend you a certain amount of money for a specific property. To qualify for this process, most lenders want proof of income and assets (such as bank statements), as well as information about any debts or liens against those assets (such as credit cards). If these conditions are met then they will give their approval based on how much debt burden can be carried by each borrower after all other debts have been paid off.

Get a real estate agent and find a home

After you get pre-approved for a mortgage you will know exactly how much you can spend on a home. Now it is time to talk to a realtor who can send you homes in your area of interest and in your price range. Once they do that, make sure they're willing to help with all aspects of the process.

A realtor can guide you through the process and help you along the way. It can be a long process and it is best to have someone on your side who will guide you through all of it.

When you find a home that interests you, it is time to talk to your realtor about submitting an offer.

Submit an offer

Once you've found the perfect home, it's time to submit an offer. The best way to do this is through your real estate agent. Your agent can prepare the offer on your behalf and make sure that everything is in order before sending it off.

Once you've got an accepted offer on a property, it's important that you get it inspected by a professional home inspector before signing off on anything final. A good home inspector will be able to see if there are any issues with the property so that they can be resolved before the closing day.

Your mortgage lender will also need to review your pre-approved mortgage amount before allowing any changes or additions during negotiations with sellers. Lastly, always have someone who understands contracts look over everything for you.

Closing the Sale

After you've signed all of your paperwork and paid for your house, it's time for your Lawyer or Notary to review everything before finalizing things with the bank or mortgage lender. They'll make sure that all of your documents are in order and then send them off to be processed by one of these organizations:

  • Your lender

  • The title company

The closing process can take anywhere from one day up until several weeks depending on how quickly each party involved gets through their part of it.

Some Questions and additional information to consider when Getting a Mortgage in BC

How to get a Mortgage as a Small Business Owner

If you're a small business owner, you may have to provide more income documentation. For example, if your business is incorporated and not a sole proprietor or partnership, then the bank will need to see the financial statements of your company. You may also need to provide letters from your accountant and lawyer verifying their relationship with you and stating their qualifications as professionals. If they are not lawyers themselves but are partners in an accounting firm or law firm respectively, they will need to provide letters verifying this relationship as well. Finally, if there are other bank accounts in addition to your personal ones (such as those owned by family members or corporations), these must be disclosed as well

Some Tips to Get Approved For a Mortgage 

  • Make sure you have a down payment. A down payment is the amount of money that you pay when buying a home. It's usually a percentage of the cost of your home, and it helps to ensure that you can afford the mortgage payments on top of other living expenses like utilities and groceries.

  • Get pre-approved for your mortgage before house hunting! Pre-approval means that a lender has determined that you are financially able to purchase a property based on certain criteria such as income, debts, and assets (such as savings). If they approve your application, they'll give their commitment to lend money at an interest rate they've agreed upon in advance--no matter what happens during negotiations with sellers or other banks offering financing options later on in the process.* Consider getting advice from professionals who specialize in mortgages before applying for one yourself

Should I refinance my home in BC

If you're thinking about refinancing your home, it's important to know that there are a number of benefits. First and foremost, refinancing can help you save money on interest payments each month. This can be especially helpful if your current mortgage has a high-interest rate (which happens frequently when mortgages are first issued). By refinancing into a lower-rate loan, you'll be able to use the extra funds for other things--such as paying off other debts or paying down your principal balance faster than before.

Another benefit of refinancing is the flexibility it gives you in deciding how to use your available cash. Refinancing allows homeowners access to equity without having to sell their homes—but also means they don’t have any large-scale expenses like new home loans or mortgages hanging over them while they decide what future financial moves would be best for them and their families.

financing a home renovation or addition in BC

  • A renovation loan is different from an additional loan because it does not require a new mortgage commitment for the entire value of the project; instead, it allows you to borrow money against what's already been borrowed on your property (your first mortgage).

  • Do you want to take advantage of interest rates that are lower than those available on new mortgages

  • you need smaller amounts of money than those required by conventional lenders' restrictions on second mortgages (second liens).

What is CMHC insurance, and how much does it cost?

CMHC insurance, or Canada Mortgage and Housing Corporation insurance, is a mortgage default insurance product that protects lenders against loss in the event that you default on your mortgage. If you have less than 20% down payment when purchasing a home, CMHC insurance is required for all mortgages.

The cost of CMHC insurance depends on several factors: the amount borrowed; whether it's paid as one lump sum or monthly payments; and if there are any additional discounts offered by your lender (for example, if they offer a reduced premium rate). Generally speaking though, the cost of CMHC Insurance will be 1% - 2% of the total price tag of your home.


If you're looking to buy a home in British Columbia, it's important that you undestand all the steps involved in getting a mortgage. This will help ensure that your financial situation is stable and that you can make all of your payments on time. If you have any questions about this process, don't hesitate to contact us! We'd love to help out with any information needed or answer any questions about buying real estate properties here in BC.