Downtown view of Kelowna Grand Hotel and marina; highlighting Kelowna mortgages and faqs

8 FAQs on Getting a Mortgage in Kelowna

Matthew Jackson Mortgage Tips

Qualifying for a mortgage in Kelowna is possible and within reach for you. When it comes to qualifying, finding a mortgage broker near you and securing your perfect home, I’m here to help!

In this blog, I’ll go over some frequently asked questions (FAQs) about qualifying for a mortgage in Kelowna. 

 

1. Where can a down payment come from?

When you’re ready to purchase a property, the first thing you need is a down payment. It can feel stressful when it comes to preparing that large amount of money. But, your down payment can come from a lot of places. 

Firstly, it could come from your own savings or inheritance. Secondly, your down payment can be a gift from a direct family member – mother, father, sibling, grandmother, grandfather. Thirdly, if you’re a first-time home buyer, you are able to use your RRSPs towards the down payment. More on being a first time home buyer below. 

 

2. What is the minimum down payment on a property in BC?

The minimum down payment for a property in British Columbia is 5% on the first $500,000.  For homes between 500,000 and $999,999, you need 5% of the first $500,000 and 10% of the value over $500,000. 

Example: If the property is $700,000, it would be 5% on the first $500,000 and then 10% on the remaining $200,000. 

condo in kelowna under construction development with a crane in the foreground, in reference to mortgage preapproval and mortgage faqs

It’s critical to get a pre approval for a mortgage before you start looking for a property. 

If you’re looking at a property over $1 million, you need 20% of the purchase price, with a sliding scale on any portion over $1 million. Some lenders want 50% on the portion over $1 million. Some lenders, area-depending, will allow a down payment of 20% up to a purchase price of $1.5 million.

 

3. Does this amount change if you’re self-employed?

If you’re self-employed and qualify normally, your down payment amounts are the same as above. You’ll be able to do as little as 5% down.  But, if you choose to go through a stated income program, you will have to have 10% down payment prepared.

 

4. What’s the benefit of being a first-time home buyer?

When you’re getting a mortgage, there’s a big benefit to being a first time home buyer. One big cost when buying a home is the property transfer tax. Luckily for first time home buyers, that cost can be reduced or eliminated. To have this happen, the property must:

You may qualify for a partial exemption from the tax if the property:

Property Transfer Tax reduction or elimination is just one fantastic benefit of being a first time home buyer. For more benefits, check out my blog post on the 6 benefits of being a first time home buyer

 

5. What are the amortization lengths for a mortgage in Kelowna?

When it comes to amortization lengths, there are two common ones. If you have less than 20% down, the amortization length will be up to 25 years. For 20% or more, the amortization length is up to 30 years. 

 

6. Should I work with a bank or a mortgage broker?

The main difference is that at a bank you’d be working with a mortgage specialist. This person doesn’t have to have a mortgage license. They also only represent the products their financial institution offers. 

When you work with a broker, like me, you’ll be working with a mortgage broker. A broker has to receive their license and renew it every two years. In addition to being licensed, a broker has access to several of the main financial institutions, plus many other broker specific lenders. This means that I am able to shop around the different banks to find the best rate and product possible for you. 

If you were to use a mortgage specialist at a bank, they only have access to their institution’s rates and are not able to shop around for the best rates coming from other banks.

I’ve written a blog post that shares all of the other reasons why you should choose a mortgage broker. You can give that a read to learn more.

 

Smiling headshot of Matthew Jackson, Mortgage Broker of Mortgage Okanagan, wearing a dark blue shit with grey dots

I’ve been a mortgage broker with Mortgage Okanagan since 2011. I’ve funded hundreds of mortgages across all levels and types – including alternative mortgages.

7. What if I don’t qualify for a mortgage?

If you don’t qualify right away for a mortgage, don’t fret, it’s not the end of the road for you. If you don’t qualify with your one bank, reach out to me and we can see if you’d be approved at a different lender. Then, if no A lender approves you, there are B lenders as well as private lenders we can try.

Your rate would be higher, but there’s a greater possibility of being approved. This type of situation needs a hands-on approach. So, please reach out to me today to discuss your situation. 

 

8. How do I get a mortgage in Kelowna?

The final and most important of our mortgage FAQs! If you’re ready to get a mortgage in Kelowna, reach out to me today. I will go over your situation and learn more about you. Once we do that, I’ll work on getting you approved for a mortgage with the best possible rate. 

You can get started by filling out my pre-approval application on my website, replying to the blog post with the form below or giving me a call at 250-826-3111. I look forward to hearing from you and helping you get a mortgage in Kelowna!

 


Contact Us With Any Questions
Do you have any questions regarding this post or mortgages in Canada? Don't hesitate to message us with any questions you may have. *Canadian inquiries only.