Craig Johnston Personal Real Estate Corporation · Brokerage: Royal LePage Elite West
For buyers getting ready to shop. Many buyers lose a home over a financing step they didn’t know existed. This is the sequence I walk every client through before we start looking, in the order it happens.
Reviewed: October 29, 2026 · Market data: GVR September 2026 · BCFSA Licence: 187645 · Brokerage: Royal LePage Elite WestGet a pre-approval with a rate hold (usually 90 to 120 days) before you shop. You’ll be qualified at the higher of your contract rate plus 2% or 5.25%. Your down payment is at least 5% of the first $500,000 and 10% of the rest up to $1.5 million; from $1.5 million, 20%. After your offer is accepted, a financing subject gives you a few business days for the lender to approve the specific home, including its appraisal.
A pre-approval is conditional, not a guarantee. The steps that catch buyers out are a low appraisal, a change in credit or income during the rate hold, and engaging a lawyer too late.
A broker or lender pulls your credit, verifies your income (recent T4s and pay stubs, or two years of Notices of Assessment if you’re self-employed), confirms where your down payment is coming from, and issues a pre-approval with a maximum amount and a rate hold. It’s a conditional green light, not a guarantee. Lenders underwrite differently, which is why I usually suggest talking to a mortgage broker, who can compare banks, credit unions and other lenders. See why I almost always recommend a broker.
The pre-approval usually holds a rate for 90 or 120 days. If rates rise while you shop, you keep the held rate. If rates fall, many lenders will give you the lower rate when they issue the commitment, but policies vary, so ask. Protect the hold: don’t apply for new credit, close credit cards or change jobs during this window.
You’re qualified at the higher of your contract rate plus 2% or 5.25%. At a 4.5% contract rate, for example, you qualify at 6.5%, which lowers the most you can borrow. The stress test applies to all insured mortgages, and to uninsured mortgages from federally regulated lenders.
Minimum down payment depends on the price, and insured mortgages stop at $1.5 million. The full rules are in the table below.
Once your offer is accepted, the subject period lets you confirm the mortgage commitment on this specific home, satisfy the appraisal, complete the inspection and, for a strata, review the documents. Subjects must be pursued in good faith; if one can’t be satisfied, you don’t have to remove it. In a competitive situation some buyers write subject-free offers. I rarely recommend that, because the downside is much bigger than the upside.
The lender may order an appraisal. If it comes in below your price, the lender lends on the lower value and you cover the gap in cash or renegotiate. When prices move quickly or several offers push a price up, low appraisals happen more often than buyers expect.
Your lawyer or notary needs time to open the file, review title, prepare the Statement of Adjustments and coordinate with your lender. Engage them as soon as your offer is accepted, and give them at least two to three weeks before completion. I give every client my referral list at offer time.
| Purchase price | Minimum down payment | Example |
|---|---|---|
| Up to $500,000 | 5% | $450,000 → $22,500 |
| $500,000 to $1,499,999 | 5% of the first $500,000 plus 10% of the rest | $1,000,000 → $75,000 |
| $1.5 million and up | 20%; mortgage insurance isn’t available | $1,600,000 → $320,000 |
With less than 20% down you need mortgage default insurance, which adds a premium to the loan. At $1.5 million and above, insurance isn’t available, so most lenders require 20% down. That line affects many Coquitlam detached buyers.
Two free toolkits for the financing piece: the First-Time Buyer Starter Kit walks through pre-approval documents, stress-test math and down payment programs (FHSA, the RRSP Home Buyers’ Plan and the BC first-time buyer property transfer tax exemption). The Move-Up Planner covers bridge financing, mortgage penalties and whether to sell first or buy first.
The lender reduces the mortgage to match the appraised value, and you have to cover the gap or renegotiate. Ask your broker whether the lender is likely to appraise, and price your offer from recent comparable sales.
An underwriter finds a credit issue or income detail the pre-approval didn’t catch, or something changed during the rate hold, such as a new loan or a new job. A thorough pre-approval and a quiet rate-hold period prevent most of these.
Some lenders won’t lend on certain properties, such as leasehold, some older or unusual buildings, or homes with unpermitted work. Your broker can tell you early which lenders will lend on the home you want.
Benchmarks from Greater Vancouver REALTORS®. Use them to sanity-check your price range before you ask for a pre-approval.
Source: Greater Vancouver REALTORS® MLS® HPI and monthly statistics, September 2026.
“We had such a great experience working with Craig to buy our home! He was incredibly knowledgeable, patient, and always available whenever we needed him. He made us feel supported throughout the entire process and was always willing to answer our questions and take the time to make sure we felt comfortable and confident in our decisions. We never felt pressured or rushed.”
“Craig worked with my wife and me for over 3 years to find the perfect home. He was endlessly patient with us through the process. Eventually, we found our perfect home and he moved fast to execute on our behalf. He negotiated fairly and thoroughly with the sellers and was our advocate all throughout our first home purchase.”
“After searching for several years, I knew exactly what I was looking for—and Craig delivered. We viewed a handful of properties, and the home he ultimately found was exactly what I had been searching for. I couldn't believe how quickly he nailed it.”
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“Craig extended such patience, excitement and professionalism in helping my husband and I buy a townhouse in Port Coquitlam (my hometown!) so we could continue raising our two girls where I also grew up. When we faced a hurdle getting financing approval because of a lien on our desired townhome, Craig worked tirelessly with our broker to get the lien removed.”
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“We had such a great experience working with Craig to buy our home! He was incredibly knowledgeable, patient, and always available whenever we needed him. He made us feel supported throughout the entire process and was always willing to answer our questions and take the time to make sure we felt comfortable and confident in our decisions. We never felt pressured or rushed.”
“Craig worked with my wife and me for over 3 years to find the perfect home. He was endlessly patient with us through the process. Eventually, we found our perfect home and he moved fast to execute on our behalf. He negotiated fairly and thoroughly with the sellers and was our advocate all throughout our first home purchase.”
No. A pre-approval holds a rate and checks your file in advance, which is useful for setting your budget. The full approval comes after you have an accepted offer with a financing subject, when the lender’s underwriter signs off on the specific property. Some pre-approved buyers are declined at that stage, which is why the financing subject exists.
Usually 90 to 120 days, depending on the lender. If your search runs longer than the hold, you re-qualify at current rates, which can change the price range you can afford.
A clause that gives you a set number of business days to confirm financing on the specific home. Five to seven business days is common, and it’s negotiable. If your lender doesn’t approve the home in time, you don’t have to remove the subject.
The most common reasons are a low appraisal, a credit or income issue the pre-approval didn’t catch, and a property the lender won’t lend on, such as some leasehold or unusual properties. A thorough pre-approval and choosing the right lender prevent most of these.
Both can work. A bank can be simple if you have steady salaried income and strong credit. A broker can compare many lenders, which often helps self-employed buyers, people new to Canada or anyone with less straightforward income. I work with both and recommend based on your file.
At $1.5 million and above, mortgage insurance isn’t available, so most lenders require at least 20% down: $320,000 on a $1.6 million home. Below $1.5 million you can put down as little as 5% of the first $500,000 and 10% of the rest, with mortgage insurance.
Have a question about a specific home or street? Book a 20-minute call or see what your current home is worth.
I’ve lived in the Tri-Cities for more than 47 years and on Burke Mountain for more than nine. I coordinate the offer structure, financing subject and timing with my clients’ mortgage professionals, because a financing subject that falls through is a common reason deals collapse.
Written and reviewed by Craig Johnston, REALTOR® (BCFSA Licence #187645), Royal LePage Elite West · Last reviewed October 29, 2026. This page is general information, not mortgage or legal advice. Craig is not a mortgage broker; confirm your situation with your lender or broker and your lawyer or notary.
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