📅 Last Updated: November 18, 2024
✏️ Written By Lisa Rennie
🕵️ Fact-Checked by Caitlin Wood

Mortgages British Columbia - Compare Providers

ProviderLoan AmountRateTerm (Months)Rating
00 Up to $50,000Prime – 35%3 – 120
Up to $50,000
1001732233600 Venue Financial$50 – $1,500 $14 per $100 borrowed Up to 62 days
$50 – $1,500
201718582400 Wagepay$100 – $1500 Max of $8 per $100 & 24% interest up to 62 days Next payday (max 62 days)
$100 – $1500
1001709683200 DashloansUp to $1,250 Up to 32% 90 – 150 days
Up to $1,250
231700524800 ParachuteUp to $25,000 24.99% – 29.99% 30 or 60
Up to $25,000
161700524800 AimFinance$100 – $1,000 29% – 35% 9 – 24
$100 – $1,000
181695254400 GoLoans$500 – $5,000 Up to 32% 3 – 4
$500 – $5,000
71692748800 BreeUp to $350 0% Up to 65 days
Up to $350
1001688083200 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
221683676800 Windmill Microlending$15,000 6.7% Up to 60
$15,000
21670889600 Fora$1,000 – $15,000 19.9% – 34.9%
$1,000 – $15,000
81666051200 Nyble$250 0%
$250
1001643932800 FlexMoney$500 – $15,000 Starting at 18.9% 6 – 60
$500 – $15,000
1001642723200 Pay2DayUp to $1,500 $14 per $100 borrowed 14 days
Up to $1,500
1001623369600 AfterpayVaries 0% 6 or 8 weeks
Varies
11620777600 Spring FinancialUp to $35,000 9.99% – 35% 6 – 60
Up to $35,000
241607558400 Helium Loans$500 – $50,000 Varies 6 – 60
$500 – $50,000
1001598918400 LM FinancialUp to $15,000
Up to $15,000
1001598832000 LM Credit$500 – $15,000 Start at 10.99% 9 – 60
$500 – $15,000
191582243200 LendCare Up to 60
1001580860800 SimplyBorrowed$1,500 – $10,000 12 – 60
$1,500 – $10,000
171580774400 goPeer$1,000 – $25,000 8.99% – 34.99% 36 or 60
$1,000 – $25,000
1001579478400 North’n Loans$100 – $1,500
$100 – $1,500
1001579219200 Instant Payday CanadaUp to $1,500 $14 per $100 borrowed Up to 30 days
Up to $1,500
1001576713600 Financeit$500 – $100,000 Starting at 12.99% Up to 60
$500 – $100,000
1001562198400 Pylo Finance$500 – $15,000 15.99 – 35% 6 – 60
$500 – $15,000
101552262400 Money Mart$500 – $18,000 29.9% or 34.28% 6 – 60
$500 – $18,000
1001551830400 Progressa$1,000 – $15,000 19% – 34.95% 12 – 60
$1,000 – $15,000
1001551398400 My Canada PaydayUp to $1,500 $14 per $100 borrowed 14 days
Up to $1,500
1001551398400 Mr. Payday$100 – $1,500 $14 per $100 borrowed 14 – 31 days
$100 – $1,500
1001551398400 Loan ExpressUp to $1,500 $14 per $100 borrowed 14 days
Up to $1,500
1001546128000 Loan AwayUp to $5,000 19.9% – 35% 6 – 36
Up to $5,000
231551139200 LendDirectUp to $15,000 34.99% Open-end
Up to $15,000
1001550534400 GoDay$100 – $1,500 $14 per $100 borrowed 14 days
$100 – $1,500
111569974400 iCashUp to $1,500 $14 per $100 borrowed Up to 62 days
Up to $1,500
1001550534400 Focus Financial Inc.Up to $1,500 $14 per $100 borrowed 14 days
Up to $1,500
1001550534400 Eastern Loans$500 – $1,000 23% 3 – 6
$500 – $1,000
1001550534400 DMO Credit$300 – $1,000 Up to 38% 3 – 4
$300 – $1,000
1001549411200 Capital Cash$100 – $1,500 $14 per $100 borrowed 14 days
$100 – $1,500
1001567555200 Cash Depot$300 – $3,000 18% + fees 6
$300 – $3,000
1001549238400 Credit Club$100 – $1,500 $14 per $100 borrowed Up to 62 days
$100 – $1,500
1001549238400 Credit2Go$250 – $1,500 23.99% – 29.99% 3 – 4
$250 – $1,500
201548720000 Ledn$500 – $1,000,000 7.9% 12
$500 – $1,000,000
1001548720000 Amber Financial$500 – $50,000 Starting at 8.99% 3 – 120
$500 – $50,000
61545264000 SkyCap Financial$500 – $10,000 12.99% – 34.99% 9 – 60 months
$500 – $10,000
41543622400 Fairstone FinancialUp to $60,000 19.99% – 34.99% 6 – 120 months
Up to $60,000
1001545350400 Lamina$300 – $1500 Starting at 18% 3 – 7
$300 – $1500
1001545350400 514 Loans$300 – $3,000 22% – 32% 3 – 4
$300 – $3,000
121545350400 Cashco FinancialUp to $7,000 35% 6 – 60
Up to $7,000
151545350400 LoanMeNow$500 – $1000 Up to 32% 3
$500 – $1000
1001545350400 Captain Cash$500 – $750 23% 3 – 4
$500 – $750
1001545350400 BC Loans$500 – $750 22% 90 – 120 days
$500 – $750
1001545350400 Urgent Loans$300 – $3,000 27% – 35% 90 – 120 days
$300 – $3,000
51545264000 easyfinancial$500 – $100,000 29.99% – 35% 9 – 84
$500 – $100,000
31545264000 Mogo FinanceUp to $5,000 34.37%
Up to $5,000
91568937600 Cash MoneyUp to $10,000 Varies by product Varies by product
Up to $10,000
211545177600 BorrowellUp to $35,000 Starting at 12.99% Up to 60
Up to $35,000
131545177600 Magical Credit$100 – $20,000 Up to 35% Up to 60
$100 – $20,000
1001569974400 Speedy Cash$200 – $1,500 $14 per $100 borrowed Next payday
$200 – $1,500
ProviderLoan AmountRateTerm (Months)Rating
00 Up to $50,000Prime – 35%3 – 120
Up to $50,000
31725321600 iCommissionUp to $40,000 $0.75 per $1,000 per day
Up to $40,000
81714089600 Primed Loans$10,000 – $20,000,000
$10,000 – $20,000,000
71714089600 OnTap Capital $10,000 – $2,000,000 10%+ Up to 36
$10,000 – $2,000,000
21669852800 Driven$10,000 – $300,000 3 – 24
$10,000 – $300,000
1001648512000 2M7 Financial Solutions$1000 - $250,000
$1000 - $250,000
1001620345600 TD Bank 12 – 60
1001611878400 Accord Financial
241607558400 Helium Loans$500 – $50,000 Varies 6 – 60
$500 – $50,000
1001598918400 Loop
1001592438400 Core Capital Group Inc
1001585612800 BarterPay 6 – 60
1001580947200 Corl$200,000 – $5,000,000
$200,000 – $5,000,000
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 Payability
1001580860800 Planet Financial
1001580688000 RiseUp to $10,000 Prime + 2.5% Up to 60
Up to $10,000
1001580256000 Merchant Growth$5,000 – $800,000 6 – 24
$5,000 – $800,000
1001579478400 Lionhart Capital$10,000 – $30,000,000
$10,000 – $30,000,000
1001579478400 Lift Capital$50,000 – $5,000,000 3 – 36
$50,000 – $5,000,000
1001579478400 Leaseline 24 – 60
1001579478400 Lease Direct
1001579478400 John DeereUp to $1,200,000 12 – 84
Up to $1,200,000
1001579046400 Hitachi Capital Canada
1001577059200 Export Development Canada
1001577059200 Essex Lease Financial Corporation
1001577059200 Equilease
1001575849600 Alliance Financing Group LTD$5,000 – $150,000 Starting 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$1,000 – $300,000 5.49% – 22.79% 12 – 60
$1,000 – $300,000
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 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 15 years
Up to $500,000
1001551830400 Royal Bank of Canada (RBC)Starting at $5,000 Up to 84
Starting at $5,000
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 $250,000 Up to 48
Up to $250,000
1001550534400 FundThrough$500 – $50,000 2.75% – 8.25% 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 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
1001548720000 BDCUp to $100,000
Up to $100,000
1001548720000 B2B Bank$10,000 – $300,000
$10,000 – $300,000
1001545264000 iCapitalUp to $250,000 3 – 24
Up to $250,000
61545350400 IOU Financial$15,000 – $1,500,000 6 – 36
$15,000 – $1,500,000
51545177600 Journey Capital$5,000 – $300,000 9% – 35% Varies by product
$5,000 – $300,000
41545177600 Lending Loop$5,000 – $500,000 4.96% – 24.93% 1 – 60
$5,000 – $500,000
61545264000 SkyCap Financial$500 – $10,000 12.99% – 34.99% 9 – 60 months
$500 – $10,000
ProviderLoan AmountRateTerm (Months)Rating
00 Up to $50,000Prime – 35%3 – 120
Up to $50,000
31632960000 SafeLendMin. $10,000 6.93% – 19.99% 18 – 96
Min. $10,000
81624233600 Auto Credit Deals $5,000 – $75,000 12 – 96
$5,000 – $75,000
241607558400 Helium Loans$500 – $50,000 Varies 6 – 60
$500 – $50,000
1001582761600 Go Auto 36 – 96
61582761600 Eden Park
1001581033600 Toyloan
1001580688000 Rifco Starting at 12.9%
1001579478400 National Powersports Financing
1001579478400 LMG Finance
1001579478400 Loans2Go
1001578873600 iA Auto Finance Starting at 10.99%
1001578873600 Gamache Group
1001551830400 Royal Bank of Canada (RBC)Starting at $5,000
Starting at $5,000
1001552262400 National BankUp to $1,000,000 up to 96
Up to $1,000,000
1001551830400 Desjardins 6 – 96
1001551830400 Canadian Imperial Bank of Commerce (CIBC)$10,000+ 12 – 96
$10,000+
1001551830400 ScotiabankUp to $1,000,000 Up to 15 years
Up to $1,000,000
1001577059200 Daimler Truck Financial
1001577059200 DealerPlan Financial
1001575849600 Coast Capital Savings
1001575849600 Canada Auto Finance$5,000 – $45,000 4.90 % – 29.95%
$5,000 – $45,000
1001575849600 Credit River Capital Inc
1001575590400 Capital Trust Financial
61569974400 Car Loans Canada Up to 29.99% 12 – 96
1001561507200 Auto Capital Canada
11560124800 Canada DrivesUp to $100,000 3.99% - 19.9% 24 -96
Up to $100,000
1001551830400 Prefera Finance
1001548633600 2nd Chance Automotive Starting at 4.2%
61545264000 SkyCap Financial$500 – $10,000 12.99% – 34.99% 9 – 60 months
$500 – $10,000
1001545177600 Carloans411 12 – 84
ProviderLoan AmountRateTerm (Months)Rating
00 Up to $50,000Prime – 35%3 – 120
Up to $50,000
1001578873600 Instant Loans CanadaUp to $50,000 24 – 60
Up to $50,000
1001545264000 BHM FinancialUp to $50,000
Up to $50,000
ProviderLoan AmountRateTerm (Months)Rating
00 N/AN/AN/A
N/A
31726531200 Lotly$5,000 + 6% – 16% 12 – 60
$5,000 +
71708473600 Blue Pearl Mortgage
51700524800 Rocket Mortgage - -
1001695945600 Mortgage Intelligence
41690934400 Neo Mortgage
21688601600 nestoMin $110,000 4.14% – 6.29% 24– 120
Min $110,000
31679616000 Frank Mortgage$100,000 – $2,000,000 Varies 12 – 60
$100,000 – $2,000,000
1001627344000 Peoples Bank 4.50% – 5.97% 12 – 60
1001575849600 Coast Capital Savings 4.09% – 7.64% 1 – 10 years
1001604016000 Leap Financial
1001581033600 Mortgage Alliance 4.19% – 6.04% 12 – 120
1001580860800 Verico
1001580860800 True North Mortgage 2.99% – 5.49% 6 – 60
1001580860800 Tangerine$50,000+ 12 – 120
$50,000+
1001580860800 Think Financial
1001580860800 Turnedaway
1001580860800 REICO
1001580688000 Motusbank 6 – 60
1001579478400 Mortgage Architects 4.54% – 7.49% 6 – 120
1001578873600 Invis
1001577059200 Equitable Bank Varies
1001577059200 Dominion Lending Center
1001577059200 Fisgard Asset Management
1001577059200 First National Financial LP 4.49% – 6.63% 1 – 10 years
1001574985600 CMLS Financials$10,000 – $1,000,000 4.99% – 7.29% 12 – 120
$10,000 – $1,000,000
1001574899200 CHIP Reverse Mortgage 12 – 60
1001574899200 CanWise 4.24% – 6.30%
1001560124800 Centum 4.64% – 5.80% 1 – 10 years
1001548806400 Capital Direct$10,000 – $3,000,000 Varies 12 – 24
$10,000 – $3,000,000
1001548720000 Bridgewater Bank 12 – 60
11517097600 Alpine Credits$10,000 – $500,000 Starting at 10%
$10,000 – $500,000
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.

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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Uninsured Mortgages Explained: OSFI Stress Test Changes and What They Mean for You

Due to the effects of COVID-19, OSFI has announced that it will be making some changes to the mortgage stress test for uninsured mortgages.

Rules For Buying A Second Home And Renting Out The First In Canada
Rules For Buying A Second Home And Renting Out The First In Canada

Learn the rules for buying a second home and renting out the first in Canada, and how each type of property is treated.

How To Buy A House In Canada: A Step-by-Step Guide
How To Buy A House In Canada: A Step-by-Step Guide

Buying a house is a complex process. We've broken down each step so you know exactly what's to come when buying a house.

Boost Your Property Value: Secondary Suite Incentive Programs Across Canada
Boost Your Property Value: Secondary Suite Incentive Programs Across Canada

Thinking of adding a basement suite to your home? Find out how you can cover your costs using the government secondary suite incentive programs.

Benefits Of Home Staging In Canada
Benefits Of Home Staging In Canada

Thinking about staging your home? Find out how staging a home can result in a faster sale and an increased purchase price.

House Flipping Tax Rules In Canada
House Flipping Tax Rules In Canada

Find out how viable house flipping is to generate income given the new anti house flipping tax rules in Canada.

Should You Use Home Equity As An Emergency Fund?
Should You Use Home Equity As An Emergency Fund?

If you have a financial emergency would tapping into your home equity be a good idea? Find out if a HELOC or home equity loan in a good option.

How To Successfully Shop For A Mortgage
How To Successfully Shop For A Mortgage

Click through to read our three step guide and learn how to successfully shop for and get your mortgage approved.

How To Get A Mortgage On A Cottage In Canada: The Ultimate Guide
How To Get A Mortgage On A Cottage In Canada: The Ultimate Guide

From larger down payments to passing the stress test and understanding the tax implications, there’s a lot to consider when buying a cottage.

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