corbyn10

Hello Everyone,

Wondered if anyone has recently obtained or trying to obtain a mortgage in Vancouver. We are moving there next month and wondered if mortgages are got the same way as in the U.K. 3 x salary etc. Do you have to put fown huge deposit and what are the terms of years like, are they similar to here? Hope someone can help.

Thanks

iaink

Typically things are not as silly as the UK, where I hear about 6x salary and interest only mortgages.

Typical mortgage here is a 20 or 25 year term, renegotiated every 5 years. Downpayments vary, starting at 5% down, but most go for 10% plus. Banks will usually lend 3 times total houshold income, but that doesnt necessarily mean you can afford to borrow that much.

In ontario Recent changes now allow for 0 down mortgage, but with less than 25% down you need to pay an additional mandatory insurance premium, that in effect increases your costs. The less you put down the more it will cost in the long term. IIRC there is a break in the insurance rate at 10% down.
Besides, the more principal you borrow, the more it wil cost you in interest and extended repayment timeframe, so better to put down as much as you can.

Interest rates from the main banks are for a variable rate about 0.5% below "prime", fixed rate 5 year term is about 1.25% above. Right now prime is around 3.75%. There are probably better rates available too if you shop around, although as a newcomer it may be difficult to get the best rates right away without canadian credit history. Some folks take a short term mortgage and then refinance once there credit history is established.

Most mortgages allow up to 25% extra principal repayment everyyear without penalty to get it payed of before the agreed schedule. Biweekly repayments are relatively common as a way of paying off sooner too.

Hope this helps a little

Iain

ClareBC

In the first year of landing expect to be asked to pay a 35% deposit (or even 60% if they think you are a bad risk!) Thereafter they would like 25%, less than that and you are paying insurance on top of your mortgage payments.

If you want someone to contact drop me a PM and I'll put you in touch with my mortgage finder

Clare