Just as each person is a unique individual, so is the information that one would require in the process of buying a property. The type of purchase you are considering will dictate what you need to know. We have grouped the following to provide useful information for the major types of purchases. Of course, addressing all specific questions or informational needs would be a near impossibility. We encourage you to speak to one of our Mortgage Planners to discuss your specific needs and to address your individual questions.

Our Home Buyer's Information Kit is now available for download (from the Downloadable Forms section of our site).

Why Have a Pre-Approved Mortgage?

What is a Pre-Approved Mortgage?

Using your credit, income, and savings information, your mortgage broker (with the help of lenders) can determine the amount and terms of a mortgage that you can afford before you go shopping for a home.

Why get a Pre-Approved Mortgage?

• Peace of mind for you: you know what you can afford.
• Less wasted time: you will look for homes that are within your realistic price range.
• Less disappointment: you will have realistic expectations before searching for a home and will avoid the disappointment of finding a home that you love and then learning that you can’t afford that home.
• Rate Guarantee: Most pre-approved mortgages come with a rate guarantee for a specified period, usually between 90-120 days. This means that should the interest rates rise while you are looking, you are protected from the increase as long as you make the purchase prior to the expiry of the rate guarantee period.
• Better service from your realtor: Realtors take clients (those who have taken the effort to get pre-approved) more seriously than those clients who have not been pre-approved.

How to Get Pre-Approved?

Fill out our Online Application or contact one of our experienced Mortgage Planners.

We will calculate what you are able to borrow and negotiate the best rate available for you. As well, we will ensure you understand the various mortgage options (frequency of payments, etc.) to help reduce your interest carrying costs.

After this is done, the lender, outlining their commitment and terms of the mortgage, will issue a pre-approved certificate to you.

What is the Minimum Down Payment?

• Any qualified buyer can purchase a home with a down payment as low as 5% of the purchase price.
• Down payments of between 5% and 20% of the purchase price will require mortgage insurance:
1. CMHC, a Federal Crown Corporation, Genworth or AIG, both private insurance companies, must insure the purchase.
2. They are currently the only three mortgage insurers in the Canadian marketplace. A one time only insurance premium will be charged. This premium may be added to the total mortgage and is not required to be paid up front.
• Under certain circumstances, mortgages with down payments of over 20% will require mortgage insurance. Please talk with one of our Mortgage Planners to determine if your mortgage will need to use mortgage insurance.

Do You Have to Pay Property Purchase Tax?

Below is applicable in British Columbia and other rules and regulations will apply in other Provinces.

What is Property Purchase Tax?

A tax that is paid upon the purchase of a property, usually 1% of the first $200,000.00 of value and 2% of the remaining price.

EXAMPLE: For a $300,000 condo, the property purchase tax amount would be $4,000.00. (1% * $200,000) + (2% * $200,000).

Who is Exempt from Paying Property Purchase Tax?

If you meet the following criteria, you will be exempt from paying the property purchase tax. If you meet these criteria, please contact your Mortgage Planner to confirm that you are exempt from paying property purchase tax.

• Must be a first-time buyer.
• Must be a Canadian Citizen or Permanent Resident.
• Must have never owned property anywhere else in the world.
• Must have lived in the province for at least one year prior to purchase.
• Must have filed at least two Canadian income tax returns within the past six years.
• Property value must be less than $425,000

Buying Investment Property

• Financing a revenue property is more complex than financing other properties.
• Lenders will take additional factors into consideration, such as maintenance costs and potential rental revenue when deciding the loan amount and terms.
• Please talk to one of our Mortgage Planners for more information.

Using Your RRSP Towards Your Down Payment

The following are some general guidelines for the use of your RRSP’s as the down payment:

• The Homebuyer’s Plan allows each purchaser to withdraw up to $25,000.00 from your RRSP’s (including a spousal plan) to build or buy a qualifying home.
• You must be a resident of Canada.
• The funds must be repaid within a period of no more than 15 years, in equal installments, and you must accelerate payment to the plan. If in any year you do not repay the amount you have to repay that year, the amount that has not been repaid will be added to your income for that year. Payments commence no later than the second year in which the withdrawal was made.
• All participants on title cannot have owned an owner-occupied home in the previous five years.
• You have to intend to occupy the qualifying home as your principal place of residence no later than one year after buying or building the home.
• The contract of the purchase and sale must be entered into before the funds are withdrawn from the RRSP.
• To participate in the Homebuyer’s Plan, you have to withdraw an amount from your RRSP using form T1036.
• The amount being withdrawn must have been in the RRSP for at least 90 days prior to withdrawal.