🏡 Mortgage Help

💰 Down Payment

In Canada, the minimum down payment depends on the home’s purchase price:

5% for homes priced up to $500,000
10% on the portion between $500,000 and $999,999
20% for homes priced at $1 million or more
If your down payment is less than 20%, you're required to purchase mortgage default insurance (commonly known as CMHC insurance), which is added to your mortgage. A larger down payment reduces your overall loan amount and can help you avoid this added insurance cost.

 
📆 Mortgage Term vs. Amortization

Canadian mortgages are structured with:

Amortization period (commonly 25 years), which is the total time it will take to pay off your mortgage
Mortgage term (1 to 10 years, most commonly 5 years), which is how long your mortgage contract lasts before renewal
Your term affects the interest rate and conditions of your mortgage. When the term ends, you must renew your mortgage, often at a new rate.

 
🏦 Mortgage Types

The two main mortgage types in BC are:

Fixed-Rate Mortgages: The interest rate and monthly payments stay the same for the duration of the term. This option provides predictability and stability, ideal if you prefer consistent budgeting.
Variable-Rate Mortgages: The interest rate fluctuates based on the lender's prime rate. These usually start lower than fixed rates, but payments may vary. Some lenders offer "fixed-payment variable-rate" mortgages, where your payment stays the same even if the rate changes—what changes is how much goes toward principal vs. interest.
 

📉 Interest Rate

Your mortgage interest rate in Surrey is based on market conditions and personal financial details such as:

Credit score
Loan-to-value ratio
Employment and income stability
You can get pre-approved by a lender or mortgage broker to secure a rate and better understand your affordability.

🏠 Property Taxes in Surrey

The City of Surrey’s property tax rate is applied annually to assessed home value (provided by BC Assessment). While property taxes vary slightly year to year, most mortgage lenders collect 1/12th of your property tax amount monthly as part of your mortgage payment. You can also apply for the BC Home Owner Grant if you qualify, which helps reduce the tax burden on your principal residence.

🔒 Home Insurance

Homeowners insurance is mandatory for all mortgaged homes in BC. It protects your property and contents, and is required by lenders before funding is released. Make sure your coverage includes fire, flood, liability protection or optional earthquake coverage insurance.

🏘️ Strata Fees

If you purchase a townhouse or condo in Surrey, you’ll likely pay strata fees. These monthly payments cover:

Building insurance
Landscaping and maintenance
Common areas (like elevators, gyms, or party rooms)
Reserve fund contributions for future repairs
Strata fees vary widely depending on location, unit size, and amenities.