Mortgage Pre-Approval in Vancouver, BC
A mortgage pre-approval in Vancouver gives you a written price ceiling before you start touring condos in Yaletown or townhomes near Kerrisdale. If a condo is your first purchase, the strata documents can take longer to review than you'd expect, so we get your income, down payment and credit settled first and leave the building as the only open question on offer day. You'll get a written pre-approval and the stress test worked through with your own numbers.
How long will my pre-approval last?
The Financial Consumer Agency of Canada puts rate holds at 60 to 130 days, depending on the lender. Our Pre-Approval Assurance comes with a hold of up to 120 days, depending on the lender, so ask us for the expiry date in writing. If your search in Dunbar or Point Grey runs past that date, we can refresh the file with updated pay stubs before it lapses.
Is a pre-approval the same as a full mortgage application?
A pre-approval is a lender's review of you as a borrower, and it doesn't guarantee final approval. The final amount depends on the property's value and your down payment, so the lender still has to approve the specific home once your offer is accepted. In Vancouver that second review usually means an appraisal and, for a condo, the strata paperwork, so keep your subject-to-financing clause long enough for both. If you're selling a place you own to buy this one, bridge financing in Vancouver can cover the new down payment while both closings are pending.
How does the stress test change what I can buy?
Lenders qualify you at the greater of your contract rate plus 2% or 5.25%, a rule set by the Office of the Superintendent of Financial Institutions. On a $500,000 mortgage over 30 years, each 1 percentage point on your rate changes the monthly payment by about $283 to $298, so the test can trim your budget more than buyers expect. We run that math on your real income before you look at listings, which keeps you shopping in the price band a lender will approve. If you already own and want a second property, a mortgage refinance in Vancouver can free up equity for the down payment.
Get your Vancouver pre-approval in writing
Book a free call and have a recent pay stub and your down payment balance handy. In most cases the lender pays us on a purchase, so our help costs you nothing.
Flow Mortgage Co. arranges mortgages through BRX Mortgage Inc., licensed with the BC Financial Services Authority.
Frequently asked questions
How much down payment do I need in Vancouver?
You need 5% on the first $500,000 and 10% on the part from $500,000 up to $1.5 million. A home priced at $1.5 million or more needs 20% down, under federal rules from the Department of Finance.
Can I get a 30-year amortization on my first condo?
Yes, on an insured mortgage with less than 20% down when you're a first-time buyer or the home is newly built. You or a close relative has to live in it.
Do first-time buyers pay property transfer tax?
First-time buyers in BC pay nothing on the first $500,000 when the home is worth $835,000 or less, with a partial exemption up to $860,000. Above that, the regular tax applies, so count it in your closing cash.