Financing Information

Mortgages...

The minimum downpayment required to buy a home is only 5% of the purchase price.

Buying a home for the first time can often be an intimidating and overwhelming adventure. What are the steps to making this purchase? How much can I borrow? What will my payments be? What are all these new terms like 'interest adjustment date' mean?

Patience and expert advice is what the majority of First Time Home Buyers require. Taking out a mortgage is not as generic as most people believe. There is a multitude of mortgage options offered from an array of lenders. Customizing the right mortgage to fit your needs and goals is your ultimate objective.

Developed in consultation with past clients, our exclusive 'First Time Home Buyers Guide' is available at no cost. I believe that you will find it both informative and useful. To receive your own free copy, please contact me.

BC Home Owner Grant

Reduces property taxes by up to $570 on properties assessed up to $950,000 and continues on a sliding scale up to $1,064,000. Provides an additional $275 for a maximum of $845 for seniors, veterans and the disabled on homes assessed up to $950,000, and is reduced on a sliding scale on homes valued up to $1,119,000.

Property Transfer Tax

Home buyers in BC pay a provincial Property Transfer Tax when they buy a home. The tax is charged at a rate of 1 per cent on the first $200,000 of the purchase price and 2 per cent on the remainder. First time home buyers may qualify for an exemption on home with a maximum purchase price of $425,000 or a partial exemption on a home priced to $450,000. Buyers can't have previously owned a home anywhere in the world, and the down payment cannot exceed 30 per cent of the purchase price.

Home Buyers Plan (RRSP's for your Down Payment)

The federal government's home buyer's plan now let's qualifying homebuyers use up to $25,000 (increased from $20,000) of their RRSP to buy a home. Couples can use up to $50,000 (increased from $40,000). The home must be a principal residence, the home buyers must not have owned a home within the past five years, and the loan must be repaid within 15 years. More information be directed to the Canada Revenue Agency at: 1.800.959.8281.

First Time Home Buyers Tax Credit

This new federal tax credit program provides up $750 in tax relief to qualifying buyers for costs associated with buying a first home, including legal fees and land transfer taxes. Beginning on your 2009 personal income tax return, a new line will be incorporated to allow you to claim the credit.

Home Renovation Tax Credit

This new provision lets homeowners qualify for a federal income tax credit of up to $1,350 for home improvement projects. This temporary program provides an income tax credit on eligible home renovation expenses for work performed or goods bought after January 27, 2009 and before February 1, 2010. Home owners can claim a tax credit for 15 per cent of the renovation expenses between $1,000 and $10,000 for a maximum credit of $1,350. There is no tax credit for less than $1,000. New additions, decks, carpeting, floorings, heating systems and landscaping qualify. Furniture, appliances, tools and maintenance contracts do not qualify. Note: there are no forms. Beginning with the 2009 personal income tax return, a new line will be incorporated to allow renovators to claim the credit. If you intend to use this tax credit, be sure to save your invoices and receipts.

Apply Online

To apply online, please contact us with an estimated amount required. Once received, your information will be submitted to our in-house mortgage brokers.

Want to get pre-qualified for your mortgage? - Let us take all the worries out of getting your financing.

With access to over 30 of Canada's most innovative and competitive lenders, Our Borkers are your one-stop mortgage shop. Together, these 30+ lenders represent the largest pool of mortgage capital in the country, and this number continues to grow. With these choices comes the best possible rates and greatest flexibility.

Mortgage Terms

AMORTIZATION PERIOD:
The actual number of years it will take to pay back your mortgage loan.

APPRAISED VALUE:
An estimate of the value of the property, which is conducted for the purpose of mortgage lending by a certified appraiser. This appraisal is not to be confused with a building inspection.

ASSUMABILITY:
Allows the buyer to take over the seller's mortgage on the property.

CLOSED MORTGAGE:
A mortgage that locks you into a specific payment schedule. A penalty usually applies if you repay the loan in full before the end of a closed term.

STRATE / MAINTENANCE FEE:
A common payment among owners which is allocated to pay expenses.

CONVENTIONAL MORTGAGE:
A mortgage loan issued for up to 75% of the property's appraised value or purchase price, whichever is less.

DOWN PAYMENT:
The buyer's cash payment toward the property. The difference between the purchase price and the amount of the mortgage loan.

EQUITY:
The difference between the home's selling value and the debts against it.

HIGH-RATIO MORTGAGE:
A mortgage that exceeds 75% of the home's appraised value. These mortgages must be insured for payment.

INTEREST RATE:
The value charged by the lender for the use of the lender's money. Expressed as a percentage.

LAND TRANSFER TAX, DEED TAX OR PROPERTY PURCHASE TAX:
A fee paid to the municipal and/or provincial government for the transferring of property from seller to buyer.

MATURITY DATE:
The end of the term, at which time you can pay off the mortgage or renew it.

MORTGAGEE:
The person of the financial institution that lends the money.

MORTGAGE INSURANCE:
Applies to high-ratio mortgages. It protects the lender against loss if the borrower is unable to repay the mortgage.

MORTGAGE LIFE INSURANCE:
Pays off the mortgage if the borrower dies.

MORTGAGOR:
The borrower.

OPEN MORTGAGE:
Allows partial or full payment of the principal at any time, without penalty.

PORTABILITY:
A mortgage option that enables borrowers to take their current mortgage with them to another property, without penalty.

PRE-APPROVED MORTGAGE:
Qualifies you for a mortgage before you start looking for a home. You know exactly how much you can spend and are free to make a "firm" offer when you find the right home.

PREPAYMENT PRIVILEGES:
Voluntary payments in addition to regular mortgage payments.

PRINCIPAL:
The amount borrowed or still owing on a mortgage loan. Interest is paid on the principal amount.

REFINANCING:
Paying off the existing mortgage and arranging a new one or re-negotiating the terms and conditions of an existing mortgage.

RENEWAL:
Re-negotiation of a mortgage loan at the end of a term for a new term.

SECOND MORTGAGE:
Additional financing. Usually has a shorter term and higher interest rate than the first mortgage.

TERM:
The length of time the interest rate is fixed. It also indicates when the principal balance becomes due and payable to the lender.

TITLE:
Legal ownership in a property.

VARIABLE-RATE MORTGAGE:
A mortgage with fixed payments, but fluctuates with interest rates. The changing interest rate determines how much of the payment goes towards the principal.

VENDOR TAKE-BACK MORTGAGE:
When the seller provides some or all of the mortgage financing in order to sell their property.