📅 Last Updated: August 26, 2022
✏️ Written By Lisa Rennie
🕵️ Fact-Checked by Caitlin Wood

Mortgages British Columbia - Compare Providers

ProviderLoan AmountRateTerm (Months)Rating
00 Up to $50,000Prime – 46.96%3 - 120
Up to $50,000
1001709683200 Dashloansup to $1,250 12%-32% 90 - 150 days
up to $1,250
231700524800 Parachute$5,000 - $25,000 24.99% - 29.99% 30 or 60
$5,000 - $25,000
211700524800 AimFinance$1,000 - $5,000 46% 9-24
$1,000 - $5,000
151695254400 GoLoans$1250 16.06% (nominal) - 31.99% (effective) 3 - 5
$1250
111692748800 BreeUp to $250 0% Up to 61 days
Up to $250
81688083200 City Lending Centers (CLC)$150 - $1,600 10 - 35% 3 - 6
$150 - $1,600
1001686182400 Northstar Brokers$300 - $3,000 18% + fees 6
$300 - $3,000
1001686182400 Deposit My Cash Now$300 - $3,000 18% + fees 6
$300 - $3,000
1001686182400 My Next Pay$300 - $3,000 18% + fees 6
$300 - $3,000
61683676800 Windmill Microlending$15,000 6.7% Up to 60 months
$15,000
11670889600 Fora$1,000 - $10,000 19.9% - 46.9% -
$1,000 - $10,000
71666051200 Nyble$150 0% -
$150
1001643932800 FlexMoney$500 - $15,000 +18.9% APR 6 - 60
$500 - $15,000
1001642723200 Pay2Dayup to $1,500 - -
up to $1,500
131639094400 Loanz$1,000 - $15,000 29.9% - 46.9% APR   12 - 60
$1,000 - $15,000
301637280000 Symple Loans$5,000 - $50,000 5.75% - 22.99% Up to 84
$5,000 - $50,000
1001623369600 AfterpayVaries 0% 6 or 8 weeks
Varies
21620777600 Spring FinancialUp to $35,000 9.99% - 46.96% 6 - 60
Up to $35,000
171607558400 Helium Loans$500 - $50,000 6.99% - 46.99% 12 - 36
$500 - $50,000
1001598918400 LM Financial$1,000 - $15,000 - -
$1,000 - $15,000
1001598832000 LM Credit$500 – $15,000 + 25.99% 9 - 60
$500 – $15,000
1001595980800 FlexiLoans$200 - $1,200 25% - 32% -
$200 - $1,200
1001593561600 PayBright- 0+ 2 - 60
-
1001589155200 Moves Financial$2,500 15.65% AIR 13 - 26
$2,500
1001582243200 LendCare- - Up to 60
-
1001580947200 ECN Capital- - -
-
1001580860800 SimplyBorrowed$500 - $5,000 - 12 - 24
$500 - $5,000
1001580860800 Pebble Cash$350 - $1,000 - 2 - 12 weeks
$350 - $1,000
91580860800 Refresh Financial$1,600 - $25,000 19.99% APR 36 - 60
$1,600 - $25,000
161580774400 goPeer$1,000 - $25,000 7.5% - 31.5% APR 36 - 60
$1,000 - $25,000
1001579478400 North’n Loans$100 - $1,500 - -
$100 - $1,500
1001579219200 Loan or Credit$100 - $25,000 +4.9% -
$100 - $25,000
1001579219200 Instant Payday Canada- 15% - 19% -
-
1001576713600 Flexiti Financial- Up to 35% -
-
181576713600 Financeit$500 - $100,000 6.99% - 14.99% 12 - 240
$500 - $100,000
1001575590400 Climb1800- 2900 15.99% 23 - 36
1800- 2900
1001562198400 Pylo Finance$500 - $15,000 15.99 - 39.99% 6 - 60
$500 - $15,000
1001560124800 Fresh Start FinanceUp to $15,000 29.99% - 46.96% 9 - 60
Up to $15,000
171545955200 MarbleUp to $20,000 18.99% - 24.99% 36 - 84
Up to $20,000
191552262400 Money Mart$1,000 - $15,000 29.9% or 46.90% 6 - 60
$1,000 - $15,000
1001569974400 Private Loan Shop$500 - $50,000 15 - 30% -
$500 - $50,000
1001551830400 Progressa$1,000 - $15,000 19% - 46.95% 6 - 60
$1,000 - $15,000
1001551398400 My Canada PaydayUp to $1,500 15% - 19% 14 days
Up to $1,500
1001551398400 Mr. Payday$100 - $1,500 15% - 17% 14 -31 days
$100 - $1,500
1001551398400 Money Provider$500 - $1,000 28% - 32% -
$500 - $1,000
1001551398400 Loan Express- - 14 days
-
181546128000 Loan AwayUp to $5,000 19.9% - 45.9% APR 6 - 36
Up to $5,000
1001551139200 Lendful$5,000 - $35,000 9.9%+ 6 - 60
$5,000 - $35,000
151551139200 LendDirectUp to $15,000 19.99% APR Open-end
Up to $15,000
1001550534400 Health Smart Financial Services$300 - $25,000 7.95%+ 36 - 60
$300 - $25,000
1001550534400 GoDay$100 - $1,500 - 14 days
$100 - $1,500
1001569974400 iCashUp to $1,500 15% - 23% -
Up to $1,500
1001550534400 Focus Financial Inc.Up to $1,500 Up to 59% APR 14 days
Up to $1,500
191550534400 FlexFi$2,500 + - -
$2,500 +
1001550534400 Eastern Loans$500 - $1,000 28% - 32% 3 -5
$500 - $1,000
1001550534400 DMO Credit$300 - $1,000 38% APR 3 - 4
$300 - $1,000
1001549411200 Capital Cash$100 - $1,000 546% APR 14 days
$100 - $1,000
1001567555200 Cash Depot$300 - $3,000 18% + fees 6
$300 - $3,000
1001549238400 Credit 700$500 - $1,000 28% - 32% 4 - 5
$500 - $1,000
1001549238400 Credit Club$100 - $1,500 90% - 390% APR 14 days
$100 - $1,500
1001549238400 Credit2Go$250 - $1,000 29% APR 3 - 4
$250 - $1,000
201548720000 Ledn$500 - $1,000,000 7.9% 12
$500 - $1,000,000
1001548720000 Amber Financial$1,000 - $50,000 4.6% – 49.96% 3 - 60
$1,000 - $50,000
1001548633600 Affirm Financial$300 - $7,500 29.9% - 39.9% 6 - 60
$300 - $7,500
1001548633600 310 Loan$50 - $1,500 - 14 days
$50 - $1,500
1001545955200 Newstart CanadaUp to $20,000 19% - 49% 36 - 48
Up to $20,000
161545264000 Ferratum$2,000 - $10,000 18.9% - 54.9% 12 - 60
$2,000 - $10,000
1001545264000 SkyCap Financial$500 - $10,000 12.99% – 39.99% 9 – 36
$500 - $10,000
21543622400 Fairstone FinancialUp to $50,000 19.99% - 39.99% 6 - 120
Up to $50,000
1001545177600 LendingMate$2,000 – $10,000 34.9% - 43% 12 - 60
$2,000 – $10,000
101545264000 Consumer Capital Canada$500 - $12,500 19.99%+ 12 - 60
$500 - $12,500
1001545350400 LaminaUp to $1000 30% 3 - 5
Up to $1000
1001545350400 Loans SOSUp to $5,000 60% 6 - 60
Up to $5,000
1001545350400 514 LoansUp to $3,000 22% - 35% 3 - 4
Up to $3,000
1001545350400 Cashco FinancialUp to $7,000 - 6 – 60
Up to $7,000
1001545350400 UrLoan$500 - $2,500 29% - 46.95% 6 - 36
$500 - $2,500
51545350400 LoanMeNow$500 - $1000+ 28%-32% 3
$500 - $1000+
1001545350400 Captain Cash$500 – $750 28% – 34.4% 3
$500 – $750
1001545350400 BC Loans$500 – $750 23% - 34.4% 3 – 12
$500 – $750
1001545350400 Urgent Loans$300 - $1500 27% - 35% 3 - 4
$300 - $1500
41545264000 easyfinancial$500 - $100,000 Starting at 29.99% 9 - 84
$500 - $100,000
31545264000 Mogo FinanceUp to $3,500 47.72% -
Up to $3,500
21568937600 Cash Money$1,500 – $10,000 Varies by province Varies
$1,500 – $10,000
101545177600 Borrowell$1,000 - $35,000 5.99% - 29.19% 36 - 60
$1,000 - $35,000
181545177600 Magical Credit$100 - $20,000 Up to 46.8% Up to 60
$100 - $20,000
1001569974400 Speedy CashUp to $1,500 15% - 23% 14 days
Up to $1,500
ProviderLoan AmountRateTerm (Months)Rating
00 Up to $50,000Prime – 46.96%3 - 120
Up to $50,000
31697414400 SafeBorrowUp to $800,000 9% - 49.99% 3, 6, 9, or 12
Up to $800,000
21669852800 Driven$5,000 - $300,000 - 3 - 24 months
$5,000 - $300,000
1001648512000 2M7 Financial Solutions$10,000 - $250,000 Varies 6-12
$10,000 - $250,000
1001620345600 TD Bank- - 12 - 60
-
1001611878400 Accord Financial$5,000 - $30,000,000 - Up to 18
$5,000 - $30,000,000
171607558400 Helium Loans$500 - $50,000 6.99% - 46.99% 6 - 36
$500 - $50,000
1001598918400 Loop- - -
-
1001592438400 Core Capital Group Inc- - -
-
1001585612800 BarterPay- 0.9% - 12% 6 months - 5 years
-
1001581984000 Clearbanc$10,000 - $10,000,000 6% - 12.5% -
$10,000 - $10,000,000
1001581292800 SNAP Financial Group- - -
-
1001581033600 GE Capital- - -
-
1001581033600 We Can Financial- - -
-
1001581033600 Wajax Equipment- - -
-
1001580947200 Key Equipment Financing- - -
-
1001580947200 Corl$10,000 - $1,000,000 - -
$10,000 - $1,000,000
1001580860800 Yellowhead Equipment Finance Ltd- - -
-
1001580860800 Specialty Truck Financing- - -
-
1001580860800 Travelers Financial- - -
-
1001580860800 Peel Financial- - -
-
1001580860800 Pioneer Financial Services$5,000 - $1,000,000 - -
$5,000 - $1,000,000
1001580860800 Polaris Leasing- - -
-
1001580860800 Patron West- - -
-
1001580860800 Payabilityup to $250,000 - -
up to $250,000
1001580860800 Planet Financial- - -
-
1001580688000 RiseUp to $10,000 - -
Up to $10,000
1001580256000 Merchant Growth$5,000 - $500,000 - 6 - 18 months
$5,000 - $500,000
1001579478400 Onesta- - -
-
1001579478400 Lionhart Capital$10,000- $30,000,000 Min 4.95% -
$10,000- $30,000,000
1001579478400 Lift Capital- - 12 - 120
-
1001579478400 Leaseline- - 24 to 60
-
1001579478400 Lease Direct- - -
-
1001579478400 John Deere- - -
-
1001579046400 Hitachi Capital Canada- - -
-
1001578873600 Guardian Leasing- - -
-
1001577059200 Export Development Canada- - -
-
1001577059200 Essex Lease Financial Corporation- - -
-
1001577059200 Equilease- - -
-
1001575849600 Alliance Financing Group LTD$5,000 - $150,000 15% + 6 - 24
$5,000 - $150,000
1001575849600 CanaCapUp to $250,000 - -
Up to $250,000
1001575590400 CLE Capital- - -
-
1001575590400 Canada Equipment Loan- - -
-
11545955200 SharpShooter Funding$5,000 - $150,000 Fee-Based: Starting at 9% 12 - 60
$5,000 - $150,000
1001552262400 First West Credit Union$500,000 - $10,000,000 - -
$500,000 - $10,000,000
1001552262400 Laurentian Bank of CanadaUp to $250,000 - Up to 10 years
Up to $250,000
1001552262400 HSBC Bank Canada- - -
-
1001552262400 National BankUp to $1,000,000 - -
Up to $1,000,000
1001551830400 Canadian Imperial Bank of Commerce (CIBC)$10,000+ - Up to 15 years
$10,000+
1001551830400 ScotiabankUp to $1,000,000 -   Up to 15 years
Up to $1,000,000
1001551830400 Bank of Montreal (BMO)Up to $500,000 - Up to 10 years
Up to $500,000
1001551830400 Royal Bank of Canada (RBC)$5,000 - $10,000 - Up to 7 years
$5,000 - $10,000
1001551398400 CWB National Leasing$3,500+ - -
$3,500+
1001551398400 Money in Motion$10,000 - $1,000,000 4% - 14% 12 - 84
$10,000 - $1,000,000
1001551139200 Lease LinkUp to $75,000 - Up to 18
Up to $75,000
1001550534400 FundThrough$500-$50,000 0.5% weekly 12 week cycles
$500-$50,000
1001550534400 Econolease Financial Services Inc.$1,000 - $1,000,000 6% - 20% -
$1,000 - $1,000,000
1001550534400 Easylease CorpUp to $5,000,000 4.5% 24 - 72
Up to $5,000,000
1001550534400 Dynamic Capital- - -
-
1001550534400 Capify$5,000 - $200,000 - -
$5,000 - $200,000
1001549411200 Canadian Equipment Finance$50,000 - $12,000,000 - 24 - 96
$50,000 - $12,000,000
1001549411200 Capital Key$5,000 - $1,000,000+ - 1 - 60
$5,000 - $1,000,000+
1001549238400 Cashbloom$5,000 - $1,000,000 - 3 - 24
$5,000 - $1,000,000
1001548720000 BFS Capital$5,000 - $5,000,000 - 4 - 18
$5,000 - $5,000,000
1001548720000 BDCUp to $100,000 6.05% + 60
Up to $100,000
1001548720000 Baron Finance$10,000+ 18% - 22% -
$10,000+
1001548720000 B2B Bank$10,000 - $300,000 4.70% - 5.45% -
$10,000 - $300,000
1001548633600 AOne Financial SolutionsUp to $5,000,000 5% - 10% 12 - 60
Up to $5,000,000
101545177600 Borrowell$1,000 - $35,000 5.6% – 25.5% 36 – 60
$1,000 - $35,000
1001545264000 iCapital$5,000 - $250,000 - 3-18
$5,000 - $250,000
1001545264000 Lendified$5,000 - $150,000 - 3 - 24
$5,000 - $150,000
61545350400 IOU Financial$5,000 – $100,000 15% + 12 – 18
$5,000 – $100,000
1001545264000 Company Capital$5,000 – $100,000 Starting at 6.87% 3 – 18
$5,000 – $100,000
51545177600 OnDeck$5,000-$250,000 8% - 29% APR 6 - 18
$5,000-$250,000
41545177600 Lending Loop$5,000 – $500,000 Starting at 5.9% 3 – 60
$5,000 – $500,000
1001545264000 SkyCap Financial$500 - $10,000 12.99% – 39.99% 9 – 36
$500 - $10,000
1001561507200 Thinking CapitalUp to $300,000 - -
Up to $300,000
ProviderLoan AmountRateTerm (Months)Rating
00 Up to $50,000Prime – 46.96%3 - 120
Up to $50,000
41632960000 SafeLendUp to $50,000 15.99% + 12 -72
Up to $50,000
61624233600 Auto Credit DealsUp to $50,000 29.99% – 46.96% 12 - 96
Up to $50,000
171607558400 Helium Loans$500 - $50,000 - 24 - 60
$500 - $50,000
1001594339200 Alphera Financial Services- - -
-
1001582761600 Go Auto- - 12 - 96
-
61582761600 Eden Park- 11.9% - 22.9% Up to 84
-
1001581033600 WeFinanceCars- + 4.9% -
-
1001581033600 Walker Financial Services- - -
-
1001580688000 Rifco- - -
-
1001579478400 National Powersports Financing- - -
-
1001579478400 LMG Finance- - -
-
1001579478400 Loans2Go- - -
-
1001578873600 iA Auto Finance- +8.99% -
-
1001578873600 Gamache Group- - -
-
1001551830400 Royal Bank of Canada (RBC)$5,000 - $10,000 - up to 84
$5,000 - $10,000
1001552262400 Laurentian Bank of CanadaUp to $250,000 - 12 - 60
Up to $250,000
1001552262400 National BankUp to $1,000,000 - up to 96
Up to $1,000,000
1001551830400 DesjardinsUp to $100,000 - 6 - 96
Up to $100,000
1001551830400 Canadian Imperial Bank of Commerce (CIBC)$10,000+ - 12 - 96
$10,000+
1001551830400 ScotiabankUp to $1,000,000 - up to 96
Up to $1,000,000
1001577059200 Daimler Truck Financial- - up to 72
-
1001577059200 DealerPlan Financial- - -
-
1001575849600 Coast Capital Savings- Starting at 4% Up to 84
-
1001575849600 Canada Auto Finance$5000 - $45,000 4.90 % - 29.95% APR 36 - 72
$5000 - $45,000
1001575849600 Credit River Capital Inc- - -
-
1001575590400 Capital Trust Financial- - -
-
1001575590400 Canadian Truck Loan- - -
-
1001575504000 Canada Car Loans- - -
-
21569974400 Car Loans Canada$7500 - $59,995 3.95% + 12 - 96
$7500 - $59,995
1001562112000 Car Creditex- Up to 49.9% -
-
1001561507200 Auto Capital Canada- - -
-
1001561507200 Carfinco- - Up to 84
-
11560124800 Canada DrivesUp to $100,000 3.99% - 19.9% 24 -96
Up to $100,000
1001551830400 Prefera FinanceUp to $30,000 - -
Up to $30,000
1001548720000 Approve Canada- - -
-
1001548633600 2nd Chance Automotive- 4.2%+ -
-
1001545955200 Newstart CanadaUp to $20,000 19% - 49% 36 - 48
Up to $20,000
1001545264000 SkyCap Financial$500 - $10,000 12.99% – 39.99% 9 – 36
$500 - $10,000
1001545177600 Splash Auto Finance by RifcoUp to $50,000 - -
Up to $50,000
1001545177600 Carloans411$5,000 – $40,000 - 12 – 72
$5,000 – $40,000
1001545177600 AutoArriba- - Maximum 84
-
ProviderLoan AmountRateTerm (Months)Rating
00 Up to $50,000Prime – 46.96%3 - 120
Up to $50,000
1001578873600 Instant Loans Canada$1,000 - $35,000 - 24 - 60
$1,000 - $35,000
1001545955200 Newstart CanadaUp to $20,000 19% - 49% 36 - 48
Up to $20,000
1001545264000 BHM FinancialUp to $25,000 - 12 - 60
Up to $25,000
ProviderLoan AmountRateTerm (Months)Rating
00 N/AN/AN/A
N/A
71708473600 Blue Pearl MortgageVaries Varies 1 - 10 years
Varies
51700524800 Rocket Mortgage- - -
-
1001695945600 Mortgage Intelligence- - -
-
1001695772800 QuestMortgage- - -
-
41690934400 Neo MortgageVaries 5.54%+ Varies
Varies
21688601600 nestoMin $100,000 5.34%+ 2 - 10 years
Min $100,000
31679616000 Frank Mortgage$100,000 - $2 million Fixed, variable, or adjustable rates 1 - 5 years
$100,000 - $2 million
1001627344000 Peoples Bank- 1.94% - 2.45% 12 - 60
-
21620777600 Spring FinancialUp to $35,000 - -
Up to $35,000
1001575849600 Coast Capital Savings- 1.51% - 6.6% 1 - 10 years
-
1001604016000 Leap Financial$15,000 to $1,500,000 +1.90% -
$15,000 to $1,500,000
1001581033600 Mortgage Alliance- 2.74% - 6.30% 12 - 120
-
1001580947200 Paradigm- - -
-
1001580860800 Verico- - -
-
1001580860800 True North Mortgage- 2.64% - 4.45% 12 - 120
-
1001580860800 Tangerine$50,000+ 2.74% - 3.49% 12- 120
$50,000+
1001580860800 Think Financial- - 36 - 60
-
1001580860800 Turnedaway- - -
-
1001580860800 REICO- - -
-
1001580688000 Motusbank- 2.79% - 6.00% 6 - 60
-
1001579478400 Mortgage Architects- 2.74% - 3.70% 6 - 120
-
1001578873600 IntelliMortgage- - -
-
1001578873600 Invis- 2.69% - 3.95% 6 - 120
-
1001577059200 Equitable Bank$25,000 - $800,000 4.59% - 5.64% 6 - 60
$25,000 - $800,000
1001577059200 Dominion Lending Center- - -
-
1001577059200 Fisgard Asset Management- -- -
-
1001577059200 First National Financial LP- 2.84% - 7.30% -
-
1001574985600 CMLS Financials$100,000 - $750,000 - 12 - 120
$100,000 - $750,000
1001574899200 CHIP Reverse Mortgagemin 25,000 3.89.% - 4.84% 12 - 60
min 25,000
1001574899200 CanWise- 2.23% - 4.45% -
-
1001560124800 Centum- 2.89% - 3.79% -
-
1001548806400 Capital Direct$10,000 - $1,500,000 Varies 12 - 24
$10,000 - $1,500,000
1001548720000 Broker Financial Group Inc.- 2.41% - 3.84% -
-
1001548720000 Bridgewater Bank- - -
-
11517097600 Alpine Credits$10,000+ Based on equity -
$10,000+
ProviderServicesRating
00 Debt Consolidation Program, Debt Settlement Program, Consumer Proposal, Bankruptcy Consultation
N/A (Referrer)
1001576540800 BDO Credit Counselling, Bankruptcy, Consumer Proposal
1001576540800 Full Circle Debt Solutions Inc Credit Counselling, Debt Management Program
1001576368000 Consolidated Credit Credit Counselling, Debt Management Program
1001576454400 4Pillars Debt Restructuring, After Care - Credit Rebuilding Program, Corporate Debt Restructuring

Are you looking to buy a home in the near future? If so, you’ll likely need to take out a mortgage to finance such a large purchase. But before you do that, there are a few things you should know about mortgages in British Columbia, as well as what it takes to get approved for one.

For more information about loans in British Columbia, click here.

Credit Score Required to Get a Mortgage in British Columbia

Lenders take a close look at all mortgage applicants before they approve them for a home loan. In British Columbia, you’ll need a minimum score of 680 if you plan to apply for a conventional mortgage. Lenders within this sphere want to see a credit score of at least 680 in order to minimize their risk of lending out funds for a home loan. The higher your credit score, the higher your chances of securing a mortgage in British Columbia.

Any scores less than this will make it much more difficult to get approved in British Columbia. Even if your lender did approve your mortgage application, you would likely be offered less favourable terms and be charged a much higher interest rate compared to borrowers with a high credit score. If your credit score is currently less than 680, you may want to consider taking a few months to improve your score. This will make it easier for you to get approved for a mortgage with favourable terms and rates.

Alternative Mortgage Options For Bad Credit Consumers in British Columbia

What if your credit score isn’t as high as it could be? What if this is hindering you from getting approved for a conventional mortgage?

While this is certainly not an ideal situation, it doesn’t have to mean your dreams of buying a home are dashed. Instead, you may want to consider alternative options available in British Columbia. Here are just a few options you may want to consider:

Get a cosigner – If you’re unable to secure a mortgage on your own because your credit score isn’t high enough, you may want to consider getting a cosigner. In this situation, a cosigner would sign your mortgage along with you and serve as a backup in case you ever default at some point on your loan. While the cosigner does not actually have anything to do with the home you are buying, they will guarantee the loan in case you’re unable to continue making payments. If this happens, the cosigner would make the payments on your behalf.

Read this to learn what other types of loans you can get with a cosigner.

Take out a bridge loan – A bridge loan is actually a rather common financial tool that many Canadians in British Columbia take advantage of if their credit scores are sub-par. This financial product is designed as a short term solution for anyone who is looking to use their properties to help them give their credit a boost when traditional lenders have rejected their mortgage applications. Bridge loans can help borrowers in British Columbia gain access to a lower interest rate loan in the near future.

Want to know more about short-term mortgage financing and bridge loans? Look here.

Improve your credit score – Perhaps one of the best things you can do if you have bad credit that’s standing in the way of securing a traditional mortgage is to take the time to improve your score. There are several things you can do right now to do so:

  • Make timely debt payments
  • Utilise no more than 30% of your available credit
  • Don’t apply for too many loans in a short period of time
  • Keep old credit lines open
  • Don’t close out any debt accounts that still have an outstanding balance on them

How Does Bad Credit Affect Daily Life?Take a look at this infographic to see how bad credit can affect your daily life.

Mortgage Pre-Approval in British Columbia

People in British Columbia who are considering buying a home in the near future and taking out a mortgage to finance the purchase are highly encouraged to get pre-approved for a home loan before they start their home search.

A mortgage pre-approval is a commitment from the lender to loan you the money needed to finance a home purchase, though it will still be subject to other conditions, including home appraisal.

There are several key reasons why you would want to get pre-approved. For starters, it will help you find out exactly how much house you can afford. Your lender will tell you how much you may be able to get approved for based on the financial documentation and information you provide. From there, you’ll be able to focus only on properties that are within your budget. This will save you a lot of time and disappointment in the long run.

Pre-approvals can also help showcase you in a more positive light to sellers, who will see you as a serious buyer. This is especially helpful in hot seller’s markets where the competition among buyers is fierce. Buyers with a pre-approval letter in hand will have a competitive edge over those who have not been pre-approved.

A pre-approval can also help move the mortgage approval process along faster, since much of the work to review all the information has already been done.

Should you spend the entire mortgage pre-approval amount when buying a home? Click here to know.

Types of Mortgages Available in British Columbia

There are many different types of mortgages in British Columbia, depending on your particular situation, including the following.

Conventional mortgages – These are traditional mortgages that require a 20% down payment. Because of their low loan-to-value ratio, they’re less of a risk. As such, they’re not subject to mortgage default insurance, or CMHC insurance. Borrowers in British Columbia must have a good credit score and solid financials in order to get approved for a conventional mortgage.

Fixed rate mortgages – These mortgages feature an interest rate that does not change throughout the term of the mortgage. Because the rate is fixed, the mortgage payments stay the same, which is an attractive option for those in British Columbia who like to know exactly how much they’ll be responsible for paying each month.

Adjustable rate mortgages – Unlike fixed-rate mortgages, an adjustable-rate mortgage comes with an interest rate that fluctuates at set intervals and is adjusted based on the prime rate. Since the rate fluctuates, so do the actual monthly mortgage payments. The attractive thing about these mortgages is that the rate is usually lower than fixed-rate mortgages at the onset. However, once the rate is adjusted at set intervals, there’s always a chance that the rate can go even higher than rates associated with fixed-rate mortgages.

Second mortgages – These are mortgages that are taken out on a property that already has a mortgage on it. Basically, a second mortgage allows you to borrow against the value of your property. Since your home is an asset, its value will usually appreciate over time. Also known as home equity lines of credit (HELOCs) or home equity loans, second mortgages provide a means to use that collateral for other purposes without having to sell the home to free up the equity built up in it.

Cost of Buying a House in CanadaWant to know how much it costs to buy a house in Canada’s major cities? Check out this infographic.

What is a Mortgage Amortization Period?

You will have a certain amount of time to repay the mortgage in full, which is referred to as the amortization period. Shorter amortizations come with higher monthly payments because the same loan amount will need to be paid off in a much shorter time frame.

Click here to learn the differences between a mortgage term and a mortgage amortization.

On the other hand, longer amortizations come with lower monthly payments, but they take longer to pay off. Further, longer amortizations are more expensive because more interest will have to be paid over the life of the loan compared to a mortgage with a shorter amortization period.

Mortgage Payment Options in British Columbia

In order to repay your mortgage in full, you’ll make payments in installments. Depending on what you choose and what your mortgage lender in British Columbia offers you, there are a few options in terms of frequency of mortgage payments:

  • Monthly – This is the most common mortgage payment schedule and involves making 12 payments per year.
  • Weekly – This is a more accelerated way to pay down your mortgage and involves making 52 weeks a year.
  • Bi-weekly – Another accelerated way to pay down your mortgage is by making bi-weekly payments, which involves making 26 payments per year.
  • Accelerated bi-weekly – This payment schedule involves making half of the monthly mortgage payment every two weeks.

For more information about these mortgage payment options, look at this.

How to Compare Mortgage Offers in British Columbia

As a borrower, you may want to take the time to compare mortgage offers in order to make the most informed decision on who to work with. When comparing different mortgage products and lenders in British Columbia, be sure to compare the following:

  • Interest rate
  • Term
  • Amortization period
  • Pre-payment options
  • Early repayment penalties
  • Fees

Be sure to read the fine print when comparing mortgages to make sure there are no other hidden fees associated with different mortgage products.

Wondering how you can pay off your mortgage early? Find out by reading this.

Hidden Costs of Buying a House in British Columbia

Along with paying your mortgage, there are plenty of other costs associated with buying a home. It’s important to find out exactly what these hidden costs are in order to determine precisely how much this major purchase will cost you overall.

Here are some fees that you should take into consideration before buying a home:

  • Down payment
  • Interest
  • Property taxes
  • Home inspection
  • Appraisal
  • Legal fees
  • Real estate commissions
  • Renovations
  • Maintenance fees
  • Property insurance
  • Title insurance
  • Property survey
  • Mortgage default insurance
  • New home warranty fee

The list is quite lengthy and the costs can really add up. Be sure to tally up all of these fees to help you establish the total cost to buy and operate a home.

For some more information about the hidden costs of buying a home, take a look at this.

Mortgage Insurance Rules in British Columbia

As stated earlier, conventional mortgage requires a minimum 20% down payment in order to avoid mortgage default insurance. This policy may be paid by the borrower, but it actually protects the lender in case the borrower defaults on the mortgage. This fee is usually added to each mortgage payment and is not required to be paid up front.

What’s the difference between a conventional mortgage and a collateral mortgage? Find out here.

How to Save for a Down Payment

A down payment is a crucial part of a mortgage in British Columbia. The amount that you are able to put down will determine how much you have to borrow from a lender. The more you can put down, the lower the loan amount will be and the less interest you’ll have to pay in the long run. Your monthly payments will also be lower.

Read this to know more about mortgage down payments.

Conventional high-ratio mortgages require no less than 5% down, while other alternative mortgage options may require less. That said, it’s always in your best interests to put down as much as you can in order to borrow less and avoid pay mortgage default insurance.

Here are some tips to help you save for a down payment:

  • Make saving a priority
  • Pay down your high-interest debt off first
  • Automate your savings
  • Cut down on expenditures
  • Borrow from your RRSP
  • Use a First Time Homebuyers Program if applicable

Check this out to discover some facts about Canada’s RRSP Home Buyers Plan.

Frequently Asked Questions

How do I get a pre-approved mortgage in British Columbia?

Getting your mortgage pre-approved is an important step to the home buying process. You will get to know the maximum amount you qualify for and can plan ahead for monthly payments. You’ll also lock in a favourable interest rate for 2 to 4 months and sellers will be more willing to negotiate with you. To get pre-approved, you’ll need to consent to a credit check and provide certain documents. These include identification, proof of employment, proof of down payment and closing costs, and info about your assets, debts, and fixed expenses.

I have bad credit. Can I still qualify for a mortgage?

Lenders may decline to approve your mortgage if you have a bad credit history. However, some lenders will still consider approving you with some conditions. For example, you might only qualify for a lower amount or higher interest rate. In addition to this, you may be required to bring on a co-signer or make a larger down payment. Fixing errors on your credit report might also just be enough to make a difference.

Can I pay off my mortgage early?

Generally, the faster you pay off a loan, the more you save on interest. With an open mortgage, you can pay your mortgage off early or make extra payments without penalty. However, if you have a closed mortgage, you will incur a hefty prepayment penalty. This fee also usually applies when selling your mortgaged home or transferring to a new mortgage lender. Luckily, most closed contracts have a prepayment privilege, which is an agreement that lets you make early payments but only up to a certain amount agreed upon with the lender.

Final Thoughts

Taking out a mortgage is an involved process that requires due diligence on both your part and the part of the lender. There is a lot to take into consideration when it comes to mortgage approval, and you’d be well advised to strengthen your finances and credit in order to increase the odds of mortgage approval at a low-interest rate. When you’re in the market for a mortgage in British Columbia, contact Loans Canada to help you find the right mortgage lender and product for you.

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