FAQs
General Mortgage Questions
What is a mortgage?
A mortgage is a loan that allows you to purchase property. The property serves
as collateral for the loan until it’s fully paid off.
What is the difference between a fixed-rate and a variable-rate mortgage?
A fixed rate mortgage has an interest rate that remains the same throughout the
term, while a variable-rate mortgage fluctuates based on market interest rates.
How long does the mortgage approval process take?
Typically, it takes 5/10 business days, depending on the complexity of your application and the responsiveness of all parties.
What is mortgage pre-approval?
Pre-approval is a process where a lender determines how much you can borrow based on your financial information, giving you an idea of your budget before house hunting.
What are closing costs, and how much should I budget for them?
Closing costs include legal fees, property transfer tax, and home inspections. In BC, these costs are typically 2–5% of the property’s purchase price.
First Time Home Buyers
How much do I need for a down payment on my first home?
For homes under $500,000, the minimum down payment is 5%. For homes between $500,000 and $1,500,000, the minimum is 5% on the first $500,000 and 10% on the portion above $500,000. Homes over $1,500,000 require a 20% down payment.
Can I get pre-approved before I start house hunting?
Yes, we recommend getting pre-approved to understand your budget and show sellers you are a serious buyer.
Am I eligible for the Property Transfer Tax exemption?
You may qualify if you're a first-time buyer purchasing a home under $500,000.
What is the First Time Home Buyer Incentive?
It’s a shared equity program where the government helps with a portion of your
down payment in exchange for a share in the property’s equity.
What is the Property Transfer Tax (PTT) exemption for first-time home buyers?
First-time home buyers may qualify for a PTT exemption based on the property's fair market value (FMV):
Full exemption for properties with an FMV of $500,000 or less.
Partial exemption of up to $8,000 for properties with an FMV between $500,000 and $835,000.
Sliding scale exemption for properties with an FMV between $835,000 and $860,000.
No exemption for properties with an FMV above $860,000.
Refinancing
What does refinancing a mortgage mean?
Refinancing involves replacing your current mortgage with a new one to get better rates, change terms, or access home equity.
When is the right time to refinance?
When interest rates drop, you need to consolidate debt, or you want to access equity for major expenses.
Are there penalties for breaking my mortgage to refinance?
Yes, there are typically penalties if you break your mortgage to switch to another lender. However, if you stay with your current lender, there may be options available to avoid or reduce the penalty. We can help you explore the best refinancing solutions based on your situation.
How much equity do I need to refinance?
Lenders typically allow you to refinance up to 80% of your home’s appraised value.
Debt Consolidation
What is debt consolidation?
Debt consolidation combines multiple debts into a single loan, often using your mortgage, to simplify payments and reduce interest.
What types of debt can I consolidate into my mortgage?
You can consolidate credit cards, car loans, personal loans, and lines of credit.
Will consolidating debt affect my credit score?
Initially, there may be a small dip, but regular payments on the new loan can improve your score over time.
What risks are involved in debt consolidation?
When you consolidate debt into your mortgage, you will owe more on your home. However, in most cases, this can improve your cash flow by lowering your overall monthly payments. It’s important to consider the long-term impact and ensure it aligns with your financial goals.
Self Employed Mortgages
Can I qualify for a mortgage if I’m self-employed?
Yes, we work with lenders who specialize in self-employed mortgages, considering alternative income verification methods.
What documents are required for a self-employed mortgage?
Commonly required documents include Notices of Assessment (NOAs), tax returns, bank statements, and proof of business income.
Do I need a higher down payment if I’m self-employed?
Not necessarily, but some lenders may require a slightly higher down payment depending on your financial situation.
How is my income calculated if I’m self-employed?
Lenders usually average your income over the past 2/3 years using your NOAs and tax returns.
Investment Properties
What is the minimum down payment for an investment property in BC?
T○ The minimum down payment is 20% for non-owner-occupied properties.
Can I use rental income to qualify for an investment mortgage?
Yes, a portion of rental income is typically included in the lender’s calculations to determine your eligibility.
Are there additional taxes for investment properties?
Yes, including the BC Speculation and Vacancy Tax and potential capital gains taxes on resale.
What types of investment properties can I finance?
Options include single-family homes, condos, duplexes, and multi-unit residential properties.
Legalities and Compliance in British Columbia
What is the Property Transfer Tax in BC?
The Property Transfer Tax in BC is calculated based on the fair market value of the property: 1% on the first $200,000, 2% on the portion between $200,000 and $2,000,000, 3% on the portion between $2,000,000 and $3,000,000, and 5% on any remaining amount above $3,000,000.
Are there restrictions on foreign buyers in BC?
Yes, the federal government implemented restrictions on foreign purchases of residential properties in certain areas, including BC.
What is the BC Speculation and Vacancy Tax?
This annual tax applies to residential properties left vacant in certain regions. Exemptions apply for primary residences and certain rentals.
What happens if I miss a mortgage payment?
Missing a payment can result in late fees and damage to your credit score. If ongoing issues arise, the lender may begin foreclosure proceedings.
Tools and Resources
Do you offer mortgage calculators?
Yes, we provide tools for calculating affordability, payments, and amortization schedules.
How do I know which mortgage term is right for me?
Shorter terms offer lower rates but require renewal sooner, while longer terms provide stability. We can help you choose based on your needs.
What is the difference between an open and a closed mortgage?
Open mortgages offer flexibility to pay off your loan early but at higher rates, while closed mortgages have lower rates but stricter terms for extra payments.
Contact and Support
How can I contact Crestview Mortgage Services?
Call us at 604-726-3606 or email mtgcrt@telus.net You can also fill out our contact form for a quick response.
Do you charge for consultations?
No, we offer free consultations to discuss your mortgage options.
What areas do you serve?
We primarily serve Vancouver and surrounding regions but are licensed to assist clients across British Columbia.
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