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Mortgage Pre-Approvals: Why They Matter and How to Get One
August 06, 2025
If you’re thinking about buying a home in British Columbia, the smartest first step is getting pre-approved for a mortgage. A pre-approval gives you a clear idea of what you can afford and helps you shop with confidence in a competitive market.
In this guide, I will explain what a mortgage pre-approval is, why it matters, what documents you will need, and how I can help you secure one quickly and easily.
What Is a Mortgage Pre-Approval?
A mortgage pre-approval is a written statement from a lender that shows how much they’re willing to lend you based on your financial situation. It typically includes:
- The maximum amount you can borrow
- An interest rate (usually valid for 90 to 120 days)
- A conditional approval based on your income, credit, and down payment
Getting pre-approved is not the same as final mortgage approval, but it gives you a strong head start in the home-buying process.
Why It Matters
BC’s housing market moves fast, especially in areas like Vancouver, Victoria, and Kelowna. Sellers want to know buyers are serious — and a pre-approval shows that you’re financially ready to make an offer.
Here’s why a pre-approval gives you an edge:
- You will know exactly how much you can afford
- You can lock in a rate before market rates go up
- Your offer is more attractive to sellers
- You avoid delays when it's time to finalize the deal
Without a pre-approval, you risk falling in love with a home that’s out of your price range or missing out on a hot property while you scramble to get your financing in order.
What You Need to Get Pre-Approved
To get pre-approved, lenders will want to review your:
- Government-issued ID
- Proof of income (pay stubs, T4s, or income tax returns)
- Proof of employment or self-employment
- Recent bank statements
- Credit report (I can pull this for you with some initial paperwork completed)
- Down payment source (savings, RRSP, gift letter, etc.)
The process can usually be done in two to three business days, depending on how quickly you provide your documents.
How Much Can You Get Pre-Approved For?
Lenders determine your maximum mortgage using two key formulas:
- Gross Debt Service (GDS) Ratio: How much of your income goes toward housing costs (mortgage, property taxes, heating, and condo fees if applicable).
- Total Debt Service (TDS) Ratio: How much of your income goes toward all debts, including car loans, credit cards, and housing.
How Long Does a Pre-Approval Last?
Most mortgage pre-approvals are valid for 90 to 120 days. During that time, your interest rate is locked in — giving you protection if rates go up. If rates go down, many lenders will offer you the lower rate.
If your pre-approval expires before you buy a home, we can renew or update it based on your most recent financial information.
What Happens After You Are Pre-Approved?
Once you’re pre-approved, you can:
- Start house hunting with a clear price range
- Submit offers with more confidence
- Work with your realtor knowing your financing is in place
When you find a home and your offer is accepted, I will handle the mortgage process by submitting the final paperwork to the lender. Because we will have already done the groundwork, this part is much faster.
How a Mortgage Broker Helps
As a mortgage broker, I work with over 40 lenders — including banks, credit unions, and monoline lenders — to find the best pre-approval options for your situation.
I can help you:
- Understand how much you can realistically afford
- Shop for the best rates and terms
- Gather and review your documents
- Avoid common pre-approval mistakes
Final Thoughts
A mortgage pre-approval is a simple but powerful step that sets you up for success when buying a home. It gives you clarity, leverage, and peace of mind in one of the biggest purchases of your life.
If you are ready to start the home-buying journey or just want to know your numbers, reach out today. I’ll walk you through the pre-approval process and get you on the path to homeownership with confidence.
Reverse Mortgages: What You Need to Know
August 06, 2025
If you're a homeowner in British Columbia aged 55 or older, a reverse mortgage could help you access the equity in your home without selling it. It can be a flexible way to supplement retirement income, help your kids with a down payment for a home of their own, pay off debts, or cover unexpected expenses — all while staying in your home.
This guide explains what a reverse mortgage is, how it works, and whether it might be right for you or a family member.
What Is a Reverse Mortgage?
A reverse mortgage is a type of loan that lets you access up to 55% of your home’s value in tax-free cash. Unlike a traditional mortgage, you don’t make monthly payments. Instead, the interest accumulates over time and is paid back when you sell your home, move out permanently, or pass away.
In Canada, reverse mortgages are regulated and offered through a very limited network of lenders.
Who Is Eligible?
To qualify for a reverse mortgage, you must:
- Be at least 55 years old
- Own your primary residence in Canada
- Have sufficient equity in your home
- Live in a qualifying property (detached home, condo, or townhouse)
If you have a spouse, they must also be at least 55, and both of you must be listed on the mortgage.
How Much Can You Borrow?
The amount you can borrow depends on:
- Your age (the older you are, the more you can access)
- Your home’s appraised value
- The location and type of property
In general, you can borrow between 20% to 55% of your home’s value. The funds can be taken as a lump sum, in monthly payments, or a combination of both.
What Can the Money Be Used For?
There are no restrictions on how you use the funds from a reverse mortgage. Common uses include:
- Supplementing retirement income
- Paying off high-interest debts or existing mortgages
- Helping children or grandchildren with down payments
- Covering in-home care or medical expenses
- Making home improvements
What Are the Costs?
Reverse mortgages typically have:
- Higher interest rates than traditional mortgages
- Legal and closing fees
- An appraisal fee
- Optional fees if you want independent legal advice
These costs are usually deducted from the amount advanced, so you don’t need to pay them out of pocket.
Pros and Cons of a Reverse Mortgage
Pros:
- Access tax-free cash without selling your home
- No regular mortgage payments required
- Remain the owner of your home
- Flexible payout options
Cons:
- Interest accumulates over time and reduces your estate value
- May affect eligibility for certain government benefits
- Must be repaid if you move or pass away
How It Gets Repaid
A reverse mortgage is repaid when:
- The home is sold
- You move out permanently
- The last borrower passes away
The loan balance (including accrued interest) is paid from the proceeds of the sale. Any remaining equity goes to your estate or heirs.
How a Mortgage Broker Helps
I can help you understand if a reverse mortgage fits your goals. Here’s what I do:
- Explain your options clearly
- Compare offers from Canada’s two main reverse mortgage providers
- Help you estimate your borrowing power
- Review long-term impacts for your estate and heirs
- Coordinate with your lawyer and family (if needed)
Final Thoughts
A reverse mortgage isn’t for everyone, but for the right homeowner, it can unlock a more comfortable retirement and reduce financial stress.
If you’re 55 or older and want to explore your options, let’s connect. I will walk you through the process and help you decide if it’s the right move for you or your family.
Self-Employment: How to Qualify & What to Expect
August 06, 2025
Getting a mortgage is more complicated when you're self-employed — but it’s definitely possible. Many British Columbians work for themselves, run small businesses, or freelance, and lenders are increasingly offering solutions designed just for them.
If you're self-employed and looking to buy a home, refinance, or renew your mortgage, this guide explains how it all works, what lenders look for, and how I can help you qualify.
Why It's Harder When You're Self-Employed
Lenders see self-employed income as less stable than a salary from an employer. Even if you make good money, it’s often harder to prove because your income may vary from year to year, and many business owners write off expenses that reduce their reported income.
Traditional lenders prefer consistent, documented income. When that’s not easy to show, you’ll need to take a different approach.
What Lenders Look For
Lenders will want to verify:
- How long you have been self-employed
- Your average income based on tax returns or bank deposits
- Business stability and growth
- Your credit score and existing debt load
- The type of industry you're in (some are considered higher risk)
You will generally need to provide:
- Two years of personal and business tax returns
- Notices of Assessment from CRA
- Business financial statements (for incorporated businesses)
- 6 to 12 months of bank statements
- Business license or articles of incorporation
Some lenders will accept stated income or use bank deposit averages instead of traditional tax documents. These options often fall under alternative lending.
Common Mortgage Options for Self-Employed Borrowers
1. Traditional Lenders (Big Banks)
If your reported income is strong, you may still qualify with a traditional lender. You will need clean credit, low debt ratios, and consistent earnings.
2. Alternative Lenders
If your tax documents do not reflect your true income, an alternative lender may use gross deposits or stated income. You may need a larger down payment (usually more than 20%) and can expect a slightly higher rate.
3. Private Lenders
If your situation is complex — such as recent self-employment or credit challenges — private lenders focus on your equity and property value more than your income.
How Much Can You Borrow?
Like any borrower, how much you can borrow depends on your income, debts, and credit. Lenders use a Gross Debt Service (GDS) and Total Debt Service (TDS) ratio to calculate affordability.
If your income varies year to year, lenders may average it or use your lowest reported amount. That’s why it’s important to structure your income properly if you’re planning to buy or refinance.
Tips to Improve Your Chances
- Keep your credit score strong (pay bills on time, limit credit usage)
- Reduce personal and business debt before applying
- Work with an accountant to maximize reported income
- Save for a larger down payment
- Have all documents ready and up to date
How a Mortgage Broker Helps
As a mortgage broker, I work with lenders who specialize in self-employed borrowers. I understand how to present your income clearly and find lenders who see the full picture.
Here’s how I help:
- Review your documents and explain what’s needed
- Match you with lenders who accept your type of income
- Compare options across 30+ lenders
- Advise you on whether to use a traditional, alternative, or private solution
- Guide you through the entire process from application to funding
Final Thoughts
Being self-employed does not mean you can’t get a mortgage — you just need to take the right approach. With careful planning and the right lender, you can qualify for a mortgage that fits your goals and your business lifestyle.
If you are self-employed and looking to buy, refinance, or renew, let’s talk. I will help you understand your options and make sure your mortgage works for you — not against you.
Alternative and Private Lending: What You Need to Know
August 06, 2025
If the big banks have said no to your mortgage application, you still have options. Alternative and private lenders in British Columbia offer flexible mortgage solutions for people who may not qualify through traditional channels.
Whether you are self-employed, have challenged credit, are newly divorced, or need short-term financing, this guide will help you understand how alternative and private lending works — and how it can help you achieve your homeownership or refinancing goals.
What Is Alternative Lending?
Alternative lending refers to mortgages offered by lenders outside the major banks. These lenders follow more flexible approval guidelines and consider a wider range of income sources and credit situations.
Alternative lenders include:
- Trust companies
- Mortgage finance companies
- Credit unions
They offer competitive rates and terms but usually require a larger down payment or equity position.
What Is Private Lending?
Private lenders are individuals or companies that lend their own money through secured mortgage loans. These loans are typically short-term (6 to 24 months) and are based more on the value of the property than on the borrower’s income or credit.
Private lending is often used when:
- You need quick access to funds
- You're in a high-risk situation (foreclosure, etc.)
- You have poor or no credit
- Traditional lenders have declined your application
Who Are These Options Best For?
Alternative and private mortgages may be a good fit for:
- Self-employed individuals with non-traditional income
- Borrowers with recent credit issues or low credit scores
- Newcomers to Canada with limited credit history
- Individuals going through divorce or separation
- Real estate investors or those with complex portfolios
What Are the Key Differences?
While traditional lenders rely heavily on credit scores, income verification, and strict debt-to-income ratios, alternative and private lenders are more flexible.
Alternative lenders may accept stated income or bank statements instead of full tax documents. They might overlook past credit issues if your current finances are strong.
Private lenders place even more weight on the property itself and the equity you have. They are often more expensive but can approve deals quickly, even when others won’t.
What Are the Costs?
Compared to traditional mortgages, alternative and private lending usually comes with:
- Higher interest rates
- Setup fees or lender fees
- Shorter terms
- Legal and appraisal fees
The trade-off is that you gain access to financing when other doors are closed. Many borrowers use these options as a stepping stone — not a long-term solution.
How a Mortgage Broker Helps
As a mortgage broker, I have access to several alternative and private lenders across BC to help you:
- Understand if this type of financing is right for you
- Access competitive rates and terms
- Compare short- and long-term impacts
- Plan a path back to traditional lending
We will work together to make sure you’re not just getting approved, but that your mortgage is aligned with your financial goals.
Final Thoughts
If you have been told you can’t get a mortgage, don’t give up. Alternative and private lenders offer flexible, short-term solutions when the banks say no. The key is having the right guidance.
Let’s talk. I can help you explore all your options and build a plan that works for your situation now — and sets you up for the future.
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