Mortgage Checklist

Overview

You only get one chance to make a solid first impression with a lender. Submitting a complete, error-free mortgage file can shave days off approval timelines and give you negotiating power on rates. Below is a step-by-step checklist tailored to Metro Vancouver buyers that reflects the latest federal rule changes and regional quirks—from higher purchase prices to common strata fees.

Key Takeaways

• Gather two years of income and tax documents before you start house-hunting.
• The minimum down payment remains 5 % on the first $500 k and 10 % on the balance up to $1.5 million (Government of Canada (2024)).
• You must still qualify at the greater of 5.25 % or your contract rate + 2 %—the federal stress test (OSFI (2025)).
• First-time buyers can now borrow with 30-year insured amortizations on new builds (Department of Finance (2024)).

Gather Your Core Documents

Income verification

• Salaried: Most recent pay stubs and T4s for the past two years.
• Hourly/commission: Letter of employment confirming guaranteed hours and year-to-date earnings.
• Self-employed: Two years of NOAs, T1 Generals, and—if incorporated—company financials.

Assets and liabilities

• Bank or investment statements showing the full down payment plus 1–2 % of the purchase price for closing costs.
• RRSP withdrawal confirmation if you plan to tap the HBP; the limit rose to $60 000 in 2024 (Department of Finance (2024)).
• Current statements for credit cards, lines of credit, car loans, and student loans.

Calculate Your Budget & Down Payment

The minimum down payment structure is tiered:

• 5 % on the first $500 000 of the purchase price
• 10 % on the portion between $500 000 and $1.5 million
• 20 % if the price exceeds $1.5 million (not eligible for default-insurance in Canada)

Remember to add closing costs—legal fees, title insurance, appraisal, and Property Transfer Tax (with potential exemptions for first-time buyers). In Greater Vancouver, budget roughly 1.5–2 % of the purchase price for these extras.

Pass the Mortgage Stress Test & Get Pre-Approved

All federally regulated lenders must ensure you can afford payments at the higher of 5.25 % or your contract rate plus two percentage points. With five-year fixed rates hovering near 4.6 % in July 2025, most buyers are qualifying at roughly 6.6 %. Securing a written pre-approval locks in a rate for up to 120 days—valuable protection if Bank of Canada announcements surprise the market.

Tip: Ask your broker to re-run the numbers if rates drop; a lower stress-test rate can boost your maximum purchase price by 7–8 %.

Choose Your Mortgage Structure

Rate type

• Fixed-rate: Predictable payments; popular for first-time buyers who value stability.
• Variable-rate: Historically cheaper but payments can fluctuate; some lenders now let you convert to a fixed term mid-cycle without penalty.

Amortization

First-time buyers purchasing newly built homes may now opt for a 30-year insured amortization, reducing monthly payments by roughly 8 % compared with the traditional 25-year cap.

Insurance provider

CMHC, Sagen, or Canada Guaranty insure high-ratio mortgages (<em><20 % down</em>). Premiums are tiered; a 5 % down payment attracts a 4 % premium, while 15 % down drops the surcharge to 2.8 %.

Payment frequency

Accelerated bi-weekly or weekly payments can shave years off your amortization without noticeable cash-flow strain.

Before Subject Removal

• Rate hold confirmation: Ensure your commitment letter matches the mortgage product and term you intend to close with.
• Appraisal: Lenders may order an appraisal to confirm the purchase price aligns with market value—vital in fast-moving Vancouver neighbourhoods.
• Lawyer or notary review: Forward the commitment, insurance premium, and amortization details for independent advice on terms and potential penalties.
• Insurance quote: Home insurance is mandatory before funding; strata buyers will need evidence of the building’s deductible limits.

Once these items are green-lit, you’re ready to lift the financing condition and move towards completion.

FAQs

Q: What credit score do I need in BC?
A: Most “A” lenders look for a score above 680, though some will review files down to 620 with strong compensating factors.

Q: Do I pay the mortgage broker?
A: For standard residential mortgages, the lender typically pays broker compensation; specialty or private loans may carry a fee disclosed upfront.

Q: Can I skip the stress test by using a credit union?
A: Provincially regulated credit unions in BC set their own underwriting, but most mirror OSFI’s guidelines to manage risk.

Need personalised advice? Reach out any time.

This guide provides general information only and may not reflect the latest regulations or market conditions. It is not legal or financial advice. Always verify details and consult qualified real-estate, mortgage, and legal professionals before making decisions.