[vc_row][vc_column][vc_column_text css=”.vc_custom_1452197452549{margin-bottom: 40px !important;}”]There are many lending institutions that offer a variety of mortgage products. Financing options and rates can vary widely, so it is important to do your research and shop around to ensure you get the mortgage that best meets your needs at the best price.

The following is a frequently updated chart of “Best Rates” currently found in the Canadian Marketplace and is provided here for “general reference” purposes ONLY.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width=”1/3″][vc_raw_js]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[/vc_raw_js][/vc_column][vc_column width=”1/3″][vc_raw_js]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[/vc_raw_js][/vc_column][vc_column width=”1/3″][vc_column_text]Additional Documentation

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NOTE: Actual rates & availability will vary by lender.  Some condtions &/or restrictions may apply.

Understand the terms &/or limitations attached to the rate being offered as they are often as important
(if not more important) than a small differentiation in rates between lenders.

[/vc_column_text][/vc_column][/vc_row][vc_row margin_bottom=”30″][vc_column][vc_raw_js]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[/vc_raw_js][/vc_column][/vc_row][vc_row][vc_column]

[/vc_column][/vc_row][vc_row margin_bottom=”30″][vc_column][vc_column_text css=”.vc_custom_1458670687349{margin-top: 30px !important;}”]A quick word on Land Transfer Tax

Under the Land Titles system in effect in British Columbia, the Province keeps a registry of land titles. Transferees are required to pay land transfer tax, with some exceptions, and a registration fee upon registration of transfer of title at the nearest land titles office.

The registration fee is 70.00.  Land transfer tax is calculated based on the fair market value of realty on the date of registration of a transfer of title and calculated as follows:[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width=”2/3″][vc_table vc_table_theme=”classic_blue”]Value%20of%20Property,Rate|[]On%20the%20first%2030%2C000,[]0%25|[]On%20the%20next%2060%2C000%20(ie%3A%2030%2C001%20to%2090%2C000),[]0.5%25|[]On%20the%20next%2060%2C000%20(ie%3A%2090%2C001%20to%20150%2C000),[]1.0%25|[]On%20the%20next%2050%2C000%20(ie%3A%20150%2C001%20to%20200%2C000),[]1.5%25|[]On%20amounts%20in%20excess%20of%20200%2C000,[]2.0%25[/vc_table][/vc_column][vc_column width=”1/3″][vc_column_text]


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Land Transfer Tax Calculator

“KEY” Tip: Considering building your Dream Home in the Okanagan Valley. This tip could pay for a nice vacation:

Substantial savings are possible if land is transfered prior to the start of a build vs completion.  Land Transfer Tax is based on the land and improvements to the land at the time of transfer.  It often makes sense to transfer the lot into your hands prior to shovels ever hitting the ground.  Ask US during a Build Consultation!  Call LEDO-house-key at 604-243-6699.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column]

[/vc_column][/vc_row][vc_row margin_top=”30″ margin_bottom=”30″][vc_column][vc_column_text]Bi-weekly and weekly payments

Most mortgages have the option to allow payments to be made on a weekly or bi-weekly basis. This option may be desirable for two reasons. The first is it can save you money as you can expect to pay off your mortgage about 4 years sooner. This can save you dramatically over the life of your mortgage. The other reason why these options are so popular is that if your employer pays you on a weekly or bi-weekly basis, you can simplify your budgeting by making the payment line up with the way you paid.

Making Extra Payments

Paying extra amounts on your mortgage can make a big interest saving over time. When we select a mortgage company, privilege payments options are something that we look for. A 20% privilege payment will allow you to pay off up to $x,000.00 per year on a $x00,000.00 mortgage. It is important that the privilege payment also be flexible to allow you to pay smaller payments on the mortgage and as often as you wish. An extra $x00.00 periodically paid on a mortgage can help you become mortgage free faster.

Reducing the CMHC fees on your purchase

When you require a mortgage for more than 80% of the purchase price of a property, that mortgage must be insured by Canada Mortgage and Housing (CMHC) or GE Mortgage insurance. The premium charged by these company`s decreases as the down payment increases. When you finance your property at 95%, a premium of 5.65% is added to the mortgage. By increasing the down payment to 10% of the purchase price the premium can be reduced to 4.90%. If you can put down 20%, you can avoid any additional insurance fee. Depending on your situation there are ways that you can structure this financing to avoid the CMHC or GE insurance premium.

Below is a chart of the premiums you would pay on an insured mortgage. The amount that would be added to your mortgage will depend on the amount you have put as a down payment. The premium is a percentage of the mortgage amount.[/vc_column_text]

[/vc_column][/vc_row][vc_row][vc_column][vc_column_text css=”.vc_custom_1462836816512{margin-bottom: 30px !important;}”]How Much Does CMHC Mortgage Loan Insurance Cost?

To obtain CMHC Mortgage Loan Insurance, lenders pay an insurance premium. Typically, your lender will pass these costs on to you. Your lender will give you the exact price when you apply for a mortgage.

The CMHC Mortgage Loan Insurance premium is calculated as a percentage of the loan and is based on the size of your down payment. The higher the percentage of the total house price/value that you borrow, the higher percentage you will pay in insurance premiums.

Remember: without mortgage insurance you may avoid the insurance premium but you’ll typically pay much higher interest rates and additional administrative fees. At the end of the day, for the vast majority of borrowers, the cost of CMHC Mortgage Loan Insurance is more than fully offset by the savings achieved.

A 10% premium refund may be available when CMHC Mortgage Loan Insurance is used to finance an Energy-Efficient Home.[/vc_column_text][vc_table vc_table_theme=”classic_blue”]Loan-to-Value,Premium%20on%20Total%20Loan,Premium%20on%20Increase%20to%20Loan%20Amount%20for%20Portability%20and%20Refinance|Up%20to%20and%20including%2065%25,0.60%25,0.60%25|Up%20to%20and%20including%2075%25,0.75%25,2.60%25|Up%20to%20and%20including%2080%25,1.25%25,3.15%25|Up%20to%20and%20including%2085%25,1.80%25,4.00%25*|Up%20to%20and%20including%2090%25,2.40%25,4.90%25*|Up%20to%20and%20including%2095%25,3.60%25,5.65%25*|90.01%25%20to%2095%25–%20Non-Traditional%20Down%20Payment**,3.85%25,*[/vc_table][vc_column_text css=”.vc_custom_1462836434950{margin-bottom: 30px !important;}”]

For portability and refinance, the premium is the lesser of Premium on Increase to Loan Amount or the Premium on Total Loan Amount. In the case of portability, a premium credit may be available under certain conditions.

* Premiums shown with an “*” do not apply for refinance. For portability the maximum LTV ratio is 90%, but CMHC may consider higher LTV ratios when the new ratio is equal to or less than the original LTV. For portability, the premium is higher for non-traditional down payments on Increase to Loan Amount.

** Down Payment Requirements — Traditional sources of down payment include: Applicant’s savings, RRSP withdrawal, funds borrowed against proven assets, sweat equity (<50% of min. required equity), land unencumbered, proceeds from sale of another property, non-repayable gift from immediate relative, equity grant (non-repayable grant from federal, provincial or municipal agency). Non-traditional sources of down payment include: Any source that is arm’s length to and not tied to the purchase or sale of the property, such as borrowed funds, gifts and 100% sweat equity.

Premiums in Manitoba, Ontario and Quebec are subject to provincial sales tax. The provincial sales tax cannot be added to the loan amount.

Amortization Options — Portability and Refinance Transactions (when paying the Premium on Increase to Loan Amount)

  1. Maintain the remaining amortization period of the existing CMHC-insured loan.
  2. Where there is an increase to the loan amount, the amortization period of the existing CMHC-insured loan and the loan increase may be blended using a weighted average provided the resulting amortization does not exceed the remaining economic life of the property. For refinance transactions the resulting amortization may not exceed 25 years. A 0.60% blended amortization surcharge to the loan increase applies to the Premium on Increase to Loan Amount.


[vc_empty_space height=”20px”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Advantages of Bigger Down Payments

As mentioned above, when you put a 20% down payment on your purchase you can avoid the CMHC premium. More importantly the larger the down payment, the lower the amount of interest you will pay over the life of your mortgage. It is important to note that it may not be wise to stretch yourself to increase your down payment and end up borrowing on credit cards or a line of credit at a higher rate

Short Term Rates vs. Long Term Rates

The options for mortgages available can be very confusing for most mortgage shoppers. Terms for mortgages vary between variable and fixed rate, 6-month terms to 10 year terms. Taking a variable or floating rate mortgage can have savings. Typically the shorter the term or guarantee of the rate, the lower the rate will be. This does not always happen, depending on the market place and the economy, but history has shown that short-term rates tend to be lower than long-term rates. The up side of variable rate is the strong potential for interest rate savings. The down side is the fact that you are accepting the interest rate risk without a guarantee. If you are considering a variable rate mortgage you need to look at your own risk tolerance, and your cash flow available to deal with potential increased payment. Considering projections of rates and where we see interest rates heading can also be important in this decision.

Always consult directly with a mortgage expert in advance of making important financial decisions or commitments. GET PRE-APPROVED![/vc_column_text][/vc_column][/vc_row]