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GET YOUR MORTGAGE PRE-APPROVED RIGHT NOW!

We’ll shop your mortgage to Canada’s leading mortgage lenders who compete for the opportunity of funding your mortgage.

Step 1. Apply Online

Do you want to get the best deal? Apply online. It is our business to get you the best mortgage and negotiate with lenders to get you the lowest rate available. There's no obligation and we don't charge you any fees.

Step 2. Get Approved

We outline your individual mortgage options. When you're ready to move forward on your application, we promptly get you approved. We make the mortgage process as simple and straight forward as possible, while completing your mortgage in a timely manner.

Step 3. Enjoy Your Savings

Because we have access to over 230 lenders, we will negotiate the very best available mortgage product and rate on your behalf. So, you better be ready to save thousands of dollars in interest. We can help you get the most out of your hard-earned money!

First Time Home Buyer

Buying your first home is a huge financial decision, and it’s one of the most important financial decisions that most Canadians will make in their lifetime. As a first-time home buyer you will need to become familiar with the variety of mortgage programs available to you. Before you start looking for your new home, get a professional mortgage advice.

At DLC First Pacific Mortgage, we can help you navigate the buying process and save you time and money along the way. We are mortgage experts dedicated to helping new home buyers get a head start! We will advise you about rebates you may qualify for, tax-efficient strategies to finance your down payment, or the minimum criteria you need to qualify for a mortgage.

Before you begin looking for your new home, it is better to know what your financial limits are. Getting pre-approved for a mortgage is something every potential home buyer should do before going shopping for a new home. To start, you need to know what it means to be pre-approved and how to boost your chances of getting pre-approved. The mortgage professionals at DLC First Pacific Mortgage are here to give you the information you need to get started.

Pre-Qualification vs Pre-Approval

The terms pre-qualification and pre-approval are often used interchangeably, but there are significant differences between the two. During the pre-qualification process, you submit an overview of your finances to a mortgage lender who provides you with an estimated loan amount that you can use as a starting point. There is no credit check required and the lender does not verify the information you provide. A pre-qualification won’t help as much as a pre-approval when you’re ready to make an offer.

Pre-Approval

A pre-approval, however, assures you that financing is available and gives you a better idea of what you can afford. A mortgage pre-approval gives you the upper hand in negotiations against other potential home buyers. Getting a mortgage pre-approval allows you to shop for a new home with confidence.

Before lenders will pre-approve you for a mortgage, they will pull a credit report and analyze some key factors:

Credit Score – lenders mitigate the risk by requiring borrowers to have as high a score as possible. Credit scores in Canada range from anywhere between 300 to 900.

Proof of Income – lenders need to know that your income is stable and sufficient enough to comfortably support your housing costs and other expenses.

Proof of Assets – lenders require current financial statements to prove that you have enough money in your accounts to cover your down-payment and closing costs (from 1.5% to 4% of the purchase price). Your down payment can be from your savings/investments/loan/sale of asset or it can be gifted from an immediate family member. The minimum amount you’ll need for your down payment based on the purchase price of your home

Purchase price of your home

Minimum amount of down payment

$500,000 or less

5% of the purchase price

$500,000 to $999,999          

5% of the first $500,000 of the purchase price and

10% for the portion of the purchase price above $500,000

$1 million or more             

20% of the purchase price

You will also need to provide a detailed list of other assets (i.e. car, boat, cottage).

Debts – lenders need to know about all of your debts and financial obligations, including: car loans, credit cards, personal loans or lines of credit, etc.

There is no cost to apply for a mortgage pre-approval and you don’t have to commit to any particular lender. A pre-approval lets you lock-in an interest rate for up to 120 days while you search for your dream home. By locking in an interest rate, you are guaranteed to get a mortgage for at least that rate or better. If interest rates drop, your locked-in rate will drop as well. 

Getting a mortgage pre-approval also helps you budget your estimated monthly payments and lets you know the maximum mortgage amount you would qualify for. It saves you from looking at homes that are out of your price range.

The Pre-Approval Process

Buying a home is exciting, but applying for a mortgage can be overwhelming, confusing and stressful. The licensed professionals, at DLC First Pacific Mortgage, will guide you through each phase of the mortgage process to make certain you understand each step and are comfortable moving forward.

To begin the process, you must complete the pre-approval application, sign a consent to a credit check, and provide several documents including:

1. Personal Information

The basic information about you (legal name, age, marital status, number and age of kids, a divorce/separation agreement if you are divorced)

2. Proof of income

 

If you are employed

 

  • Job letter
  • 2 Recent Paystubs
  • 2 years of Notice of Assessments from CRA
  • The employment letter should state how long you have worked at your job, your job title, salary or hourly wage. If hourly employee, the letter should guarantee the numbers of hours worked per week.

If you have any

Overtime/Bonuses/Shift Differential, or any income that is NOT guaranteed

  • Job letter
  • 2 Recent Paystubs
  • 2 years of T4’s
  • 2 years of Notice of Assessments from CRA

If you are on Maternity Leave

  • Employment letter confirming date you are returning to work and income when you return.

 

If you are self-employed:

  • 2 years of Notice of Assessments from CRA (personal and corporation)
  • 2 years of T1 Generals
  • Proof that you are business for self for a minimum 2 years (business license, incorporation documents, financial statements, etc.)

3. Proof of Down Payment

Your down payment can be from your savings/investments/loan/sale of asset, or it can be gifted from an immediate family member. You are required 90 days history of all accounts (savings, chequing, RRSP, mutual funds, TFSA etc.) your down payment will be funded from.

After you get your pre-approval

Congratulations, you’ve been pre-approved! Once you receive the pre-approval letter, you can get out there and start house hunting. Use your pre-approval letter to show sellers that you are serious and ready to negotiate. Start looking at listings and get to know what kind of properties will fit within your pre-approved budget.

Once you’ve found your perfect home, it’s time to submit an approval application to the lender for consideration. If the lender is satisfied by the results of the property appraisal and inspection, they will approve a loan for that particular property. When you are prepared to make an offer, there are several factors the lender will consider prior to granting a loan approval.

Final Approval

Pre-approval typically has a time limit set around 60 days, once this time expires you have to start the process again. There are a number of conditional factors the lender will consider before they will approve your loan.

The lender will inquire about the property’s appraised value, any issues with the title, and any changes to your financial status. Ones you got pre-approved, it is likely that you will qualify for the loan unless there are any changes to your financial situation. For an approval you will need to submit documents related to the specific property you decided to buy:

  • Contract of purchaseProperty
  • Disclosure Statements (2-3 page checklist filled out by the seller, BC only)
  • MLS listing if listed
  • Strata Form B if strata property
  • 2 years Annual General Meetings and strata minutes if strata property

Once the lender is satisfied that all of the parties have met the loan conditions, which will include property appraisal, title and financial documents, they will review everything once more and grant the final approval. This signifies the lender’s commitment to finance the mortgage loan in good faith, based on a thorough review of the borrower’s income, employment, assets and property details.

All legally binding documents from the lender must be signed by a Notary or escrow agent. Finally, once the borrower pays their portion of the closing costs and loan funds the title is then transferred.

Remember, the right mortgage goes beyond just the rate – it’s also important to consider:

  • the term
  • the amortization period
  • the fees you have to pay
  • your payment options
  • registering the mortgage with a standard or collateral charge
  • your prepayment options
  • ways you can save on interest
  • penalties if you sell your property before the end of your term
  • options if you want to pay your entire mortgage off early
  • transferring the remaining amount of your mortgage and the terms to a new property
  • without paying a penalty if you sell your home
  • optional life, critical illness, disability and employment mortgage insurance

At DLC First Pacific Mortgage, we are as the mortgage experts will help you to get the right combination of mortgage features, privileges and rate that is best matched to your needs!

Programs that help First Time Home Buyers to Save Money

First Time Home Buyers’ Program

The First Time Home Buyers’ Program offers eligible homeowners a rebate on some of the costs associated with buying your first home. Qualifying buyers could receive a full or partial exemption from paying the property transfer tax. The property transfer tax rate is: 1% on the first $200,000, 2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000, 3% on the portion of the fair market value greater than $2,000,000.

The exemption is only available to first time home buyers, therefore, if you are purchasing your home with someone who doesn’t qualify, only your share of the interest in the property is entitled to the rebate. So, let’s say you are eligible but your partner is not and you purchase a home for $400,000. If your interest is 60% than you would qualify for the exemption on 60% of the property transfer tax total.

Do you qualify a full or partial exemption from paying the property transfer tax?
full exemption

you must:

  • be a Canadian citizen or permanent resident
  • have lived in B.C. for 12 consecutive months immediately before the date you register the property or filed at least 2 income tax returns as a B.C. resident in the last 6 years
  • have never owned an interest in a principal residence anywhere in the world at any time
  • have never received a first time home buyers’ exemption or refund

the property must:

  • be located in B.C.
  • only be used as your principal residence
  • be 0.5 hectares (1.24 acres) or smaller

have a fair market value of:

  • $475,000 or less if registered on or before February 21, 2017, or
  • $500,000 or less if registered on or after February 22, 2017
partial exemption

Property has a fair market value less than:

  • $500,000 if registered on or before February 21, 2017, or
  • $525,000 if registered on or after February 22, 2017
  • is larger than 0.5 hectare
  • has another building on property other than the principal residence

Foreign entities and taxable trustees are not eligible for the exemption. If you are an individual who doesn’t qualify because you are not a Canadian citizen or permanent resident, but you become one within 12 months of when the property is registered, you may apply for a refund of the property transfer tax.

100% Eligible – Exemption Amounts
              Fair Market ValueExemption AmountTax Payable
Less than $500,000.00Full amount of tax normally due$0
$500,000.00$8,000.00$0.00
$501,000.00$7,699.20$320.80
$502,000.00$7,396.80$643.20
$503,000.00$7,092.80$967.20
$504,000.00$6,787.20$1,292.80
$505,000.00$6,480.00$1,620.00
$506,000.00$6,171.20$1,948.80
$507,000.00$5,860.80$2,279.20
$508,000.00$5,548.80$2,611.20
$509,000.00$5,235.20$2,944.80
$510,000.00$4,920.00$3,280.00
$511,000.00$4,603.20$3,616.80
$512,000.00$4,284.80$3,955.20
$513,000.00$3,964.80$4,295.20
$514,000.00$3,643.20$4,636.80
$515,000.00$3,320.00$4,980.00
$516,000.00$2,995.20$5,324.80
$517,000.00$2,668.80$5,671.20
$518,000.00$2,340.80$6,019.20
$519,000.00$2,011.20$6,368.80
$520,000.00$1,680.00$6,720.00
$521,000.00$1,347.20$7,072.80
$522,000.00$1,012.80$7,427.20
$523,000.00$676.80$7,783.20
$524,000.00$339.20$8,140.80
$525,000.00$0$8,500.00

First-Time Home Buyer Incentive

From September 2, 2019, The First-Time Home Buyer Incentive helps first-time homebuyers without adding to their financial burdens. Eligible first-time homebuyers who have the minimum down payment for an insured mortgage can apply to finance a portion of their home purchase through a shared equity mortgage with the Government of Canada. The Incentive enables first-time homebuyers to reduce their monthly mortgage payment without increasing their down payment. The Incentive is not interest bearing and does not require ongoing repayments.

1.   You need to have the minimum down payment to be eligible

• 5% for a first-time buyer’s purchase of a re-sale home
• 5% or 10% for a first-time buyer’s purchase of a new construction

2.   Your maximum qualifying income is no more than $120,000

3.   Your total borrowing is limited to 480000

First-Time Home Buyers’ (FTHB) Tax Credit

The FTHB Tax Credit offers a $5,000 non-refundable income tax credit amount on a qualifying home acquired after January 27, 2009. For an eligible individual, the credit will provide up to $750 in federal tax relief. You can claim $5,000 for the purchase of a qualifying home in the year if both of the following apply:

• you or your spouse or common-law partner acquired a qualifying home

• you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years (first-time home buyer)

Home Buyers’ Plan (HBP)

After March 19, 2019, the Home Buyers’ Plan (HBP) is a program that allows you to withdraw up to $35,000 in a calendar year from your registered retirement savings plans (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability.

GST/HST New Housing Rebate

You may qualify for a rebate of part of the GST or HST that you paid on the purchase price or cost of building your new house, on the cost of substantially renovating or building a major addition onto your existing house, or on converting a non-residential property into a house.