Vancouver Mortgage Rates Information
HOW MUCH CAN I AFFORD?
A great way to find out how much you can afford is through using our custom Vancouver mortgage rates calculator.
Knowing your budget is one of the first steps in the home buying process. Our easy to use mortgage calculator is a great way to determine a price range and your monthly payments. Please keep in mind, there are many factors that will ultimately determine your budget for a home purchase that is not included in the calculation below, like your outstanding debt, other monthly expenses, and job type.
TALK TO A MORTGAGE BROKER
To get a more precise number, you should look to a mortgage broker to get ‘pre-approved‘ for a mortgage amount. This process will give you a clear sense of what you can afford and will provide the benefit of ‘locking in’ an attractive mortgage rate for a period of 90-120 days. To get the process started, contact our WeLoveEastVan Mortgage Experts:
Eitan Pinsky
Eitan Pinsky from Origin Mortgages, who is filled with energy and knowledge, has a unique approach to educating you about your mortgage options and will ensure that you get a mortgage that works for you.
View Eitan’s Mortgage Site, or contact him directly
at [email protected] or 778-990-8950.
Justin Blacklock
Justin Blacklock from Averbach Mortgages, who we have worked with personally and professionally for over 10 years. His mortgage and banking knowledge, the flexibility of mortgage programs and exclusive rates are second to none.
You can reach Justin directly at [email protected]
or 604-736-1855.
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GETTING A MORTGAGE FAQ:
Q: What is a mortgage?
A: Most people assume that a mortgage is a loan. In reality, a mortgage something that YOU grant the bank, in this case, an interest in the property you are buying, in return for a loan.
Q: What are the different types of mortgages?
- The banks define a conventional mortgage as any purchase that has 20% or more of the appraised value in down payment funds. In this case, no mortgage insurance is required.
- For purchases with less than 20% down (high-ratio mortgage), you will be required to have the mortgage insured with CMHC or Genworth. The cost of these premiums can be as much as 4.15% of the total loan amount but allows you to put as little as 5% down. The additional costs are added to your mortgage loan, unlike taxes that cannot be added to your mortgage. Most people fall into this category.
Q: What’s the difference between amortization period and mortgage term?
A: The mortgage term is the length of the mortgage contract, while the amortization period is the length of time in which the interest on your monthly payments is calculated. The mortgage term is typically 2, 5, or even 10 years, but your the amortization period is typically 25-30 years. With a longer amortization period, you will lower the monthly payment, but increase your cost of borrowing (due to the total amount of time that you end up borrowing the money). Determining how long of a term to go with, may depend on whether you think interest rates will go down or up, or your ability to endure payment fluctuations. Longer terms provide more stability, but may also include costly prepayment penalties, if you need to get out of the mortgage, or need to port the mortgage to a more expensive property. At the end of the term, you are required to repay the full-unpaid balance or refinance the mortgage for the remaining length of time.
Q: Should I go with a variable or fixed rate?
A: There is no clear answer to this question, as it will depend on a variety of factors including your risk tolerance and current market conditions. Fixed rate mortgages will keep your monthly payment consistent throughout the term (2, 5, or unto 10 years) of the mortgage, while a variable rate mortgage will have payments that fluctuate with changes in interest rates. In the past and over the long term, variable rates have outperformed fixed rates, but the stability of fixed rates are more commonly chosen. In recent years, we have also seen record low-interest rates, so many see interest rates going nowhere but up.
Q: Am I able to use my RRSP’s for a down payment?
A: Yes, but there are some restrictions. The Federal Government allows first time home buyers to use up to $25,000 from RRSP funds ($50,000/couple) toward their down payment. To qualify, the following conditions must be met:
- RRSP funds withdrawn must be clear of loans.
- RRSP’s “locked in” employer’s pension plans NOT eligible.
- You must not have owned property in past 5 years. – Funds must be in your bank account for a minimum of 90 days.
- The funds used must be paid back into the RRSP account within 15 yrs.
