FAQ

How does the First Time Home Buyers' Program Work?

As a first time buyer you do not have to pay the property transfer tax, up to a maximum purchase price of $475,000. There are some qualifications which we can explain.

What is Property Transfer Tax?

This is a tax applicable to buyers who have owned before, are buying a rental home or have not lived in B.C. for a minimum of one year. This tax is 1% of the first $200,000 of the purchase price and 2% on any dollar amount above $200,000. The tax increases to 3% for dollar amounts over $2,000,000.

How do I calculate the maximum payment we can afford?

Take 35% of your gross monthly income and allow a portion for your tax payment. This is a rough estimate. If your credit is strong you can use up to 39% of your gross income.

What is the maximum purchase price to still allow a down payment of 5%?

$500,000 is the maximum purchase price with 5% down. If you purchase a property over $500,000 but under $1,000,000 you have to have 10% of the purchase price over $500,000.

Example $600,000 purchase price

5% of the first $500,000 = $25,000

10% for the extra $100,000 over the $500,000 threshold = $10,000

Total minimum down payment = $35,000

What term should we select?

A term depends entirely on your circumstance and situation.

What is the difference between open and closed mortgages?

An open mortgage may be prepaid at any time with no penalty, while closed mortgages carry penalties if the mortgage is paid back before maturity.

Which is better, an appraisal or an inspection?

These are two different categories for a home purchase. An appraisal defines the value of the home according to recent sales of comparables homes in the neighbourhood and the inspection ensures there are no building deficiencies or other problems with your home.

Who is responsible for the surveyor's certificate?

If you are purchasing a home and borrowing more than 65%, you are responsible to provide a certificate to the lender. Title insurance can be ordered in lieu of a survey certificate.

What is amortization?

Amortization allows you to pay smaller payments monthly on a large sum of money, such as a mortgage.

What is the difference between weekly, bi - weekly, semi - monthly, or monthly payments?

Accelerated payments ie. weekly or bi - weekly repay your principle back sooner than semi - monthly payments. You can save up to 41/2 years on your amortization by utilizing an accelerated payment.

Current Rates

Term ( closed )

Rate

Variable 2.25%
1 Year 2.29%
2 Year 2.24%
3 Year 2.39%
4 Year 2.44%
5 Year 2.54%
7 Year 3.09%
10 Year 3.84%

Rates updated December 5th, 2016


Copyright © 2017 Creative Mortgage . All rights reserved.