Property Purchase In Kamloops

Property Purchase In Kamloops

It’s no secret that many borrowers require a mortgage when purchasing a residential or commercial property. Purchasing a property in Kamloops is a HUGE investment – heck, it makes sense that most borrowers don’t have 100% of the funds to purchase upfront!

Purchasing a home or commercial property in Kamloops can feel like a daunting undertaking – where do you begin?

With the help of an experienced licensed Kamloops mortgage broker (such as myself!), you’ll confidently be on your way to purchasing an incredible property.

Initial Steps To Purchasing A Property

There are many factors to consider when purchasing a home in Kamloops

Take a peek at some of these self-considerations for purchasing a property:

• Is your down payment large enough?
• Do you qualify for the First Time Home Buyer Incentive in Kamloops?
• Is your credit score in an optimal range?
• Will your debt ratios be acceptable for financing?
• Which realtor or licensed Kamloops mortgage broker will you work with?
• Will you qualify under the stress-test?
• Are you eligible to purchase property in Canada?
• Do you require pre-payment flexibilities? Security for consistent mortgage payments? Etc.

Do these questions make your brain feel a little fuzzy?

Don’t fret!

I’m a trusted licensed Kamloops mortgage broker with countless success stories with helping borrowers just like yourself purchase their dream property.

With my extensive experience and expertise, you can rest assured that your mortgage journey in Kamloops will be simple, transparent, and approachable.

Now, let’s break down some important considerations and factors for purchasing a property!

The Attraction To Purchasing Property

Generally, borrowers purchase property for common reasons:

• For security of not being evicted (in comparison to renting, where a landlord can evict a tenant to move back in)
• To build home equity instead of income contributing towards a landlord’s equity, it contributes your own home equity (by paying down the principal balance on your mortgage)
• To take advantage of other mortgage opportunities (Home Equity Line of Credit [HELOC], reverse mortgage etc.)
• For freedom over the renovations and design of their home in Kamloops

Of course, as great as the benefits are of purchasing a home in Kamloops, there are factors which should also be considered such as expenses for fixing appliances/roofs, shifting housing values/mortgage payments etc.

Chatting with myself (your licensed Kamloops mortgage broker) is a GREAT way to learn whether purchasing a property is a financially sound investment for your unique borrowing situation.

Down Payment For A Property Purchase In Kamloops

Your down payment is the minimum required investment you are required to make when purchasing a property.

Many borrowers believe you’re required to provide a 20% down payment, but you aren’t!

With an insured mortgage, down payments of less than 20% are possible.

A down payment is required to mitigate lenders risk – if you’re unable to make your mortgage payments, a down payment provides a financial backing to lenders in the event of foreclosure.

If your down payment isn’t in the ideal zone (20% or more, an ‘uninsured’ or ‘conventional’ mortgage), it’s considered an ‘insured mortgage’.

In Canada, these are the down payment regulations based on purchase price:

• $500,000 or less | 5% down
• $500,000 - $999,999 | 5% for the 1st $500,000, 10% down payment for the remaining portion
• • $1 million + | 20% or more down payment (insured mortgage)

In addition to a down payment for a property purchase, there are other costs which exist.

Purchase Costs In Addition To Your Down Payment

The upfront costs of purchasing a home are a large barrier to entering the housing market for many borrowers in Kamloops.

With proper preparation and planning… your property purchase in Kamloops is within reach!

Common Additional Closing Costs/Fees For Purchasing A Property In Kamloops Are:

• Adjustment costs, lawyer fees, Land Transfer Tax etc.
• Property appraisal/home inspection fees/property survey
• Mortgage insurance premiums/Mortgage default insurance
• Title insurance/property insurance
• GST/HST (for some homes)
• Mortgage life/disability,/job loss insurance (Mortgage Protection Insurance)

Did you know?

Most services through a licensed Kamloops mortgage broker come at no cost to you (we get paid by the lender upon successful completion of a mortgage funding!)

In some special cases however, such as private lending or alternative B-lending, an additional fee may apply. We’ll disclose any costs involved upfront and with transparency.

Why Your Credit Matters When Purchasing A Property In Kamloops

You’ve probably heard that having great credit is the key to purchasing a property and being approved for an optimal mortgage in Kamloops

And it’s true!

Your credit score is a direct reflection of how you handle your finances, payments, and your overall reliability for lending to.

A GREAT or EXCELLENT credit score helps position you as lower risk, while a low credit score alerts the lender that you may be less reliable for paying your mortgage on time.

Lenders assess credit scores and credit reports differently. Private lenders may be more apt to helping a borrower purchase a home even with a low credit score (but they often charge premiums to mitigate their risk of lending).

For more information on credit, checkout my tips in ‘credit 101’!

How Debt May Impact Your Plans To Purchase Property In Kamloops

When purchasing a property, another key component your licensed Kamloops mortgage broker and lender will assess are your debt ratios.

Debt ratios give us an insight into how much you owe vs. how much you have to give.

What are your assets compared to your liabilities?
What are your monthly expenses vs. your income?

Assessing these ratios gives us a better understanding of YOUR overall risk of borrowing, and helps us provide a pre-approval amount for how much you can afford.

Debt Which May Affect Your Purchasing Power In Kamloops

• Line of credit, credit cards etc.
• Car loan
• Child support
• Student loans
• Other existing mortgages etc.

Note: we assess your debt ratios not only to protect the lender, but to protect your best interests as well in the event of a shifting economy or job loss.

Pre-Approval BEFORE Your Property Purchase In Kamloops

A highly recommended first step before you begin searching for the perfect property to purchase in Kamloops is getting pre-approved for a mortgage.

During a mortgage pre-approval, a licensed Kamloops mortgage broker (such as myself!) will learn about your mortgage story to determine your borrowing power and eligibility.

Some questions I may ask you during our introductory phone call are:

• Your employment history/income
• Are you New to Canada? Canadian Citizen? Permanent Resident status?
• Do you have kids or collect CCB?
• Credit standing
• Mortgage goals in Kamloops (fixed vs. variable rate? Open vs. closed term mortgage? Length of amortization?)

My questions will adapt depending on our conversation – one question may open us up to many more!

Each question and answer helps paint a clearer picture of your goals, and a more specific insight into which lender programs will be the most suitable.

Your personal information is fully respected, secured, and kept confidential. I never judge my clients regardless of what type of situation they are in and I always foster a comfortable, welcoming environment.

A No-Risk Chat Regarding Your Property Purchase In Kamloops

Give me a call to discuss your next purchase in Kamloops – it’s free after all!

As a licensed Kamloops mortgage broker, I work with most lenders and can negotiate amazing deals on your behalf.

If you LOVE your current bank I’ll do my best to secure a great mortgage deal through them… but if another mortgage solution exists which could save you MORE money, it may make sense to secure your mortgage through a different lender.

I’m Kyle Benzies (licensed Kamloops mortgage broker); I have an incredible amount of experience helping seasoned homeowners and first time home buyers purchase property.

For a clear, simple mortgage experience, give me a call!

***other conditions may apply to anything listed above. The information provided on this page should NOT be implicitly relied upon, and may not be 100% up to date. It's best to contact us for the most current conditions/program offerings for first time buyers***