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Financing & Mortgage Basics
Understanding financing is the foundation of a confident home search. Here's a plain-language overview of the essentials.
Down Payment
In Canada, minimum down payments are 5% on the first $500,000 of a home's price, 10% on the portion between $500,000 and $1.5 million, and 20% above $1.5 million. Anything under 20% typically requires mortgage default insurance.
Fixed vs. Variable Rates
A fixed rate stays the same for your term, offering predictability. A variable rate moves with the lender's prime rate — it can save money over time but carries more uncertainty. The right choice depends on your risk tolerance and financial plan.
Pre-Approval
A mortgage pre-approval gives you a clear budget and often locks in a rate for a set period, protecting you if rates rise while you shop.
Closing Costs to Budget For
Beyond your down payment, plan for BC Property Transfer Tax, legal fees, home inspection, appraisal, and moving costs — typically 1.5–4% of the purchase price in total.
This overview is general information, not financial advice. Speak with a licensed mortgage professional for guidance specific to your situation.
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