Mortgage Help for B.C. Homebuyers

Down Payment

Your down payment is the amount you contribute toward your home’s purchase price. In Canada, the minimum generally depends on the price of the property:

$500,000 or less: 5% of the purchase price.
Over $500,000 and under $1.5 million: 5% of the first $500,000, plus 10% of the remaining amount.
$1.5 million or more: 20% of the purchase price.
With less than 20% down, mortgage default insurance is typically required. This protects the lender and adds to your borrowing costs. A larger down payment reduces the amount you need to borrow. Your lender may require more than the minimum depending on your circumstances and the property.

Mortgage Term and Amortization

In Canada, your mortgage term is the length of your current mortgage agreement, often between one and five years. Your amortization is the estimated total time needed to repay the mortgage.

A 25-year amortization is common. Eligible first-time buyers and buyers purchasing newly built homes may qualify for a 30-year amortization with an insured mortgage. With at least 20% down, available amortization periods depend on your lender. A longer amortization generally lowers payments but increases total interest costs.

Mortgage Type

The two main options are fixed-rate and variable-rate mortgages.

A fixed-rate mortgage keeps your interest rate and regular principal-and-interest payment the same throughout your mortgage term. Your rate may change when you renew.

A variable-rate mortgage has an interest rate that can rise or fall with your lender’s prime rate. Depending on the mortgage, your payments may change, or your payment may stay the same while the amounts going toward interest and principal change.

Interest Rate

Enter the rate quoted by your mortgage broker or lender for a more accurate estimate. Your actual rate depends on factors such as your credit history, mortgage type, term and lender. Try different rates to see how they affect your estimated payments.

Property Taxes

In B.C., annual property taxes are generally based on your property’s assessed value and the applicable local tax rates. Use the property’s most recent annual tax amount as a starting point. Eligible homeowners may qualify for the B.C. Home Owner Grant, which reduces taxes on a principal residence.

Home Insurance

Home insurance helps protect your home and belongings. Your lender will generally require appropriate property insurance. For a condo or strata townhouse, budget for your own unit-owner coverage in addition to the building insurance provided through the strata corporation. Use an insurance quote to estimate this expense.

Other Costs to Consider

Leave room in your budget for strata fees, utilities, maintenance and closing costs. B.C. Property Transfer Tax is a separate purchase cost, although exemptions may apply.

This calculator provides an estimate. A mortgage broker or lender can confirm your borrowing capacity, qualification requirements and available financing options.