Mortgage FAQs: Straightforward Answers for Savvy Borrowers

In Canada, the minimum down payment depends on the purchase price of the home. For homes up to $500,000, you need at least 5%. For homes priced between $500,000 and $999,999, you’ll need 5% on the first $500,000 and 10% on the remaining balance. For homes $1 million or more, the minimum is 20%. If your down payment is less than 20%, your mortgage will require CMHC mortgage default insurance, which is added to your loan amount.

Canada offers several programs to help first-time buyers, including the First Home Savings Account (FHSA), the Home Buyers’ Plan (HBP) which allows you to withdraw up to $35,000 from your RRSP tax-free, and the First-Time Home Buyer Tax Credit. Eligibility conditions apply to each program. Brett can walk you through exactly which programs you qualify for and how to maximize them.

Common reasons to refinance include securing a lower interest rate, consolidating higher-interest debt (like credit cards or car loans) into your mortgage, accessing home equity for renovations or investments, or changing your mortgage term or amortization. Brett can help you run the numbers to see if the savings outweigh any penalties involved.

In Canada, lenders will generally allow you to refinance up to 80% of your home’s appraised value. So if your home is worth $600,000, you could potentially access up to $480,000 minus whatever remains on your existing mortgage. Because Brett is also an accredited appraiser, he has a uniquely informed perspective on what your property is truly worth in today’s Kamloops market.

The rules differ depending on whether you’re buying a recreational property or an investment/rental property. For a second home that you’ll personally use (like a vacation property), you may qualify for as little as 5% down if the purchase price is under $500,000, provided it won’t be rented out. For investment properties intended to generate rental income, you’ll typically need a minimum 20% down payment.

Yes, there can be significant ones. British Columbia has additional taxes such as the Speculation and Vacancy Tax and, for properties in certain areas, the Foreign Buyers’ Tax (if applicable). Capital gains tax may apply when you sell. Brett strongly recommends consulting a tax professional alongside your mortgage planning. He can refer you to trusted professionals in Kamloops.

A private mortgage is a loan secured against real estate, funded by a private individual or company rather than a traditional bank or credit union. Private lenders are not regulated the same way institutional lenders are, which allows them more flexibility in their lending criteria. They typically focus on the property’s equity rather than the borrower’s credit score or income.

Private mortgage rates are higher than conventional rates, typically ranging from 8% to 15% or more, depending on the lender, property, and risk profile. There are also lender and broker fees to consider. Private mortgages are generally short-term solutions (1–2 years), designed to bridge the gap until a borrower can qualify for conventional financing.

A mortgage broker acts as your advocate, shopping your mortgage application across dozens of lenders (banks, credit unions, monoline lenders, and private lenders) to find you the best rate and terms for your specific situation. Unlike going directly to a bank, where you only see that institution’s products, a broker gives you access to the full market.

In most cases, no. Mortgage brokers are typically compensated by the lender once a mortgage closes. There are some scenarios, such as private or alternative lending situations, where a broker fee may apply, and Brett will always be transparent about any costs upfront before you commit to anything.