Banks only offer their own mortgage products and rates, which may limit your options. In contrast, a mortgage broker works with multiple lenders and can often find better rates and mortgage solutions tailored to your needs.

Your credit score plays a key role in getting approved for a mortgage. Be cautious—each time a lender checks your credit, it can lower your score slightly. A mortgage broker only needs to pull your credit report once, then uses that to shop around for the best deal, minimizing any negative impact.

Getting pre-approved is more valuable than simply being pre-qualified. Pre-approval means a lender has reviewed your financials and confirmed how much you're eligible to borrow. Most pre-approvals also lock in your interest rate for up to 90 days, giving you time to shop for a home without worrying about rate increases.

Ask your broker or lender about the difference between fixed and variable rates. Fixed rates are tied to bond markets and remain the same for the term of your mortgage, offering stability. Variable rates, however, fluctuate with the Bank of Canada’s interest rate, which can change over time.

Explore both new builds and older homes. New doesn’t always mean problem-free, and older homes can offer better space, character, and solid construction—especially if they’ve been well maintained. Compare your options carefully to find the right fit for your lifestyle and budget.

Before house hunting, find out how much you qualify to borrow. If you’re a first-time buyer with Registered Retirement Savings Plans (RRSPs), you can withdraw up to $60,000 (per individual) under the Home Buyers’ Plan to use toward your down payment. You'll have 15 years to repay it, with minimum annual repayments required to avoid tax penalties. This will start the second year after withdrawal. Each person repays 1/15th of their withdrawal annually, or includes the unpaid amount as taxable income for the year if they skip a repayment.

This is a powerful new tool for First-time homebuyers introduced in 2023 by the federal government. FHSA is a registered plan that helps eligible Canadians save for their first home with significant tax advantage. It combines the tax-deductable RRSP with the tax-free withdrawals of a TFSA, but is specifically used for the purchase of your first home. You have a limit of $40,000 upto $8,000/year to contribute and have it for 15 years to use it or until you turn 71. More info here 

As of April 1, 2024, if the fair market value of any resale home you purchase is more than $835,000 but less than $860,000, you may still qualify for a partial exemption from the Property Transfer Tax. Must live in the home as your principle residence for at least 1 year. Must be a Canadian citizen or permanent resident and have never owned a property anywhere in the world. Learn more about PTT exemptions here: Fair Market Value – BC Government

If you're looking at new builds, there is a full exemption if the fair market value is $1,100,000 or less. Partial exemption between $1,100,000 and $1,150,000. This applies to homes, condos and townhouses. Again, it must be your principal residence and occupied within 92 days of registration.

Penalty Calculation: Typically, if you break a variable-rate mortgage, the penalty is equal to three months' interest on your remaining mortgage balance.

Example: For a $300,000 mortgage at a 5% interest rate, the penalty would be approximately $3,750.

Consideration: Variable-rate mortgages often have lower prepayment penalties, making them more flexible if you anticipate changes in your financial situation.

Penalty Calculation: Breaking a fixed-rate mortgage usually incurs the greater of:

• Three months' interest, or

• Interest Rate Differential (IRD): This is the difference between your original mortgage rate and the current rate for a similar term, multiplied by the remaining balance and term.

• Example: If you have a $300,000 mortgage at a 5% interest rate with two years remaining, and current rates are 3%, the IRD penalty could be around $12,000.

• Consideration: Fixed-rate mortgages can have significantly higher penalties, especially if interest rates have dropped since you secured your mortgage.