The following list provides information on frequently asked questions.

GENERAL TIPS Don't make any adjustments to your employment status. This means, don't change your employer, role, or compensation structure. If in doubt, call us! Don't make any adjustments to your debt load. If you're thinking about doing anything that would result in more debt, call us! Call us before adding your spouse, parent(s), or friend(s) to your purchase, unless they are already included in your pre-approval. When saving for down payment, don't move your money around unnecessarily! See "Down Payment Tips" below for further details. Let us know when you're going to look at a property so we can preview the listing for any potential red flags. See "Property Tips" below for more details.

OPTION 1: SELLING NOW If you plan to sell your current home and source your down payment for your new purchase from your sale proceeds, there are a couple of scenarios you may encounter: If the dates DO line up... This is the ideal scenario for most, where your sale closes before or on the same day as the closing date for your purchase, so your sale proceeds being used for down payment will simply be handled by your lawyer or notary. Keep in mind, if you are porting your mortgage from your current home to the new property, your lender may have certain date restrictions (i.e. your sale cannot close more than 30 days before your purchase). If the dates DON'T line up... If you have a firm sale agreement (subject-free) on your current home, but it is closing after your purchase, bridge/interim financing may be an option. More info can be found on our "Bridge Financing" info sheet HERE .

ONLY AVAILABLE TO HOMEOWNERS 55 YEARS AND OLDER

WHY ARE MORTGAGES BROKEN? To break a mortgage, is to change or terminate your mortgage contract before the end of your term. Many people have no intentions of breaking their mortgage, but in reality more than half of Canadians do.

DOWN PAYMENT Currently, a minimum of 20% down payment is required on rental properties. Since a 20% down payment is applied, rental properties can qualify for 30-year amortization as it doesn't trigger mortgage insurance. Can I use equity in my current owner occupied home to purchase a rental property? Yes, you can! Book an initial chat here so we can look at your specific situation. Can I use gifted funds for a down payment on a rental property? In most cases, lenders will not consider a gifted down payment for a rental property. However if you are considering using gifted funds, there may be options available. Can I borrow from my HELOC to pay the down payment in part or full? Yes. Lenders will consider all of your liabilities and apply this to your debt servicing ratios.

HOW MUCH CASH WILL I ACTUALLY NEED? Down Payment + Property Transfer Tax (PTT) + Closing Costs = Cash Required Up Front 

WHY CO-SIGNERS? With house prices increasing, government qualifying rules tightening, and income documentation becoming more onerous from banks and lenders, more and more Canadians are enlisting the help of a Co-Signer (or co-purchaser, these titles can be used interchangeably) to make the purchase of a home possible. A Co-Signer helps support the income qualification on paper for an applicant, by going on the property title and mortgage as well.

LAND  For a fully serviced lot , you will need down payment of at least 25% on the land value. Fully serviced means the lot has power, water/well & sewer/septic. For a partially serviced lot , you will need a down payment of at least 35% on the land value. Partially serviced means the land is missing at least one of the above services. Already own the land? An equity take out may be completed on the land as your first draw, up to 75% of the appraised land value , less fees.

WHAT IS A CREDIT SCORE? A credit score is a three digit number designed to predict the likelihood that an individual will pay their bills as agreed upon. It is a tool available for financial institutions to determine your creditworthiness. In Canada, there are two companies that provide credit adjudication, Equifax & TransUnion. Consumer facing scores and lender facing scores are often different as they are taking into consideration different modeling data. Don't be surprised if they vary.

WHAT IS A BRIDGE LOAN? When there is an unconditional offer to sell and purchase at the same time , then a bridge loan can be considered. As the name suggests, a bridge loan helps borrowers to "bridge" the gap between the sale of one home and the purchase of another, when the proceeds of sale are needed for down payment, but won't yet be available. Bridge financing allows the down payment to be accessed early from the equity in your home, however, to reiterate, there must be a subject-free sale contract in place. Bridge financing would be available to you through the lender providing your mortgage financing on your new purchase, as a convenience to help facilitate your longer term financing needs. For those looking only for a short term solution (i.e. downsizing, with plans to pay off any balance owing from the proceeds of sale), other options may be available and better suited to your needs. Typically, all parties on title of the home being sold must be on the bridge loan as well, so if there will be changes to who is on title for your new purchase (i.e. divorce, co-signers), please be sure to let us know.

EARLY IN THE PROCESS Dividing assets and navigating this stressful process takes time. While still in the midst of sorting things out, remember to continue making existing mortgage payments . All parties on a mortgage and title are responsible for regular payments being made on time, even during a separation or divorce. This applies to other joint bills as well.

WHAT DOES "MORTGAGE MATURITY" MEAN? A mortgage maturity occurs at the end of your mortgage term. Mortgage terms are generally around 5 years, but can range anywhere from 1 to 10 years. At the end of your term, you are required to renew your mortgage into a new term and new interest rate. You can either complete this by signing your renewal offer from your existing lender or can explore your options elsewhere.

YOUR DOWN PAYMENT Down payment verification is an incredibly important but also tedious part of your financing process. Lenders are required to confirm that funds being used for down payment and closing costs are being sourced from your own savings (or gifted) and are not borrowed.

PROCESS 1️⃣ Prior to subject removal, obtain quotes from a contractor/third party outlining the work to be completed for the improvements. 2️⃣ Work is to be completed after the purchase is finalized and funded via personal cash or credit. 3️⃣ Improvement funds are held in trust by the solicitor until they are confirmed complete. 4️⃣ Once the work is finished, the lender will require confirmation that the outlined work was completed as originally outlined. Depending on the lender and renovations, this may include paid invoices/receipts or an inspection (and permits if appl.). 5️⃣ Funds are released by the solicitor and in some cases can be released directly to the contractor.

BC's UPDATED RULES Previously, First Time Home Buyers (FTHBs) in BC qualified for a Property Transfer Tax (PTT) exemption up to a purchase price of $500,000 and were partially exempt on a sliding scale up to a purchase price of $525,000. PTT was fully payable on a purchase price higher than this. Now, as of April 1, 2024, FTHBs will qualify for: A purchase price up to $500,000, a full PTT exemption. A purchase price between $500,000 - $835,000, an exemption of PTT on the first $500,000. 2% PTT will be payable on the remaining balance between $500,000 and $835,000. A purchase price between $835,000 - $860,000, there will be a reduction of the PTT exemption in the amount of $320.80 for each $1,000 between $835k and $860k.