How much do I need for a down payment in Canada?

For homes in British Columbia:

• Under $500,000: minimum 5% down
  
• $500,000–$999,999: 5% of the first $500,000 + 10% of the remainder
  
• $1,000,000+: 20% minimum

Putting more down reduces your mortgage amount and monthly payment, and may help you qualify for a better rate. Less than 20% down requires mortgage default insurance (e.g., CMHC).

What’s the difference between amortization and term?

• Amortization (often 25–30 years) is the total time it takes to pay off your mortgage. A longer amortization (30 years) lowers monthly payments but increases total interest.
  
• Term (commonly 1–5 years in Canada) is how long your rate and contract are in effect before you renew or switch.
  

In our calculator, you can model 25-year or 30-year amortizations to see the payment impact.

Should I choose a fixed or variable mortgage?

• Fixed-rate: Your interest rate and payment stay the same for the entire term (e.g., 5-year fixed). Great for payment stability and easier planning.
  
• Variable-rate: Moves with your lender’s prime rate, which follows the Bank of Canada. Good for flexibility if rates fall, and typically lower penalties if you break the mortgage. Many variable products let you lock into a fixed at any time.
   
  

What interest rate should I use in the calculator?

We pre-fill the calculator with the current average mortgage rate for Langley, BC. Your actual rate depends on credit score, down payment, debt ratios, property type, and whether the mortgage is insured, insurable, or uninsured. Use the pre-filled rate as a starting point, then adjust to compare scenarios.

How are property taxes estimated?

The calculator estimates annual property taxes using the home value and typical municipal rates. You can override this number in Advanced Options if you know the latest assessment or mill rate for your city/towm.

Do I need home insurance to get a mortgage?

Yes. Lenders usually require homeowners insurance in BC before funding. Enter your estimated annual premium in the calculator (edit under Advanced Options) so your total monthly housing cost is accurate.

What are strata (condo/townhome) fees?

If you’re buying a condo or townhome, you’ll pay strata fees for building maintenance, insurance on common property, landscaping, and amenities. A portion goes to the contingency reserve fund (CRF) for big-ticket items (roof replacement, elevator upgrades, paving). Strata fees are mandatory and vary by building, age, and amenities.

How do down payment size and amortization affect affordability?

• Bigger down payment → smaller loan → lower payment or higher purchase power.
  
• Longer amortization (30 years) → lower monthly payment but more total interest over time.
   
  

What closing costs should Langley buyers budget for?

Plan for 1.5%–4% of the purchase price to cover items like legal fees, title insurance, appraisal, and BC Property Transfer Tax (PTT) (with potential first-time buyer exemptions if you qualify).