How many residential mortgages can I have?

The number of mortgages you can have is unlimited. Rather, people are constrained by their capacity to manage several mortgages or their financial status. First and second mortgages are two mortgages that are typically held concurrently on a same property.

What is a second mortgage Canada?

Second mortgage is a second loan or funding you take on your residential property. Interest rates on second mortgages are usually higher than first mortgages and you need to pay both your mortgages at the same time.

What is a conventional mortgage Canada?

A conventional mortgage in Canada is a loan where the down payment is at least 20% of the property's purchase price. This means that the loan amount is 80% or less of the property's value.

How long can you mortgage a home in Canada?

In Canada, you can mortgage a home for 25 years. If you are a first-time buyer or purchasing a new build you can mortgage it for 30 years. These rules took effect on December 15, 2024.

Can I buy a home with less than a 20% down payment?

The minimum amount you need for your down payment depends on the purchase price of the home. If your down payment is less than 20% of the price of your home, you'll typically need to buy mortgage loan insurance. If you're self-employed or have a poor credit history, your lender may require a larger down payment.

Should I choose a fixed rate or variable rate mortgage?

Interest rates either rise or fall. But a study suggests that homeowners with a variable mortgage fair better than a fixed rate one.

29 Apr 5 Tips to Get the Best Home Purchase Mortgage Rates in Surrey

Posted at 15:21h in Home Purchase Mortgage by Satbir Bhullar

Buying a home is one of the biggest financial decisions you will make, and in 2025’s competitive real estate market, securing the best mortgage rate is more important than ever. For buyers in Surrey, Abbotsford, Langley, and nearby areas, even a small difference in your mortgage rate can mean thousands of dollars saved over the life of your loan.

If you’re planning to purchase a home this year, this guide will walk you through five essential tips to help you lock in the most competitive mortgage rate available — and set yourself up for financial success.

Tip 1: Get Pre-Approved Early

One of the first steps toward getting the best rate is securing a mortgage pre-approval before you start house hunting. A pre-approval does more than give you a budget; it also shows lenders that you are a serious, qualified buyer, which can help you negotiate better terms.

Pre-approvals also lock in a mortgage rate for up to 120 days. If rates rise while you search for a home, your pre-approved rate protects you. And if rates fall, most lenders will allow you to access the lower rate at funding time.

In fast-moving markets like Surrey and South Surrey, being pre-approved also strengthens your offer against competitors.

Tip 2: Improve Your Credit Score

Your credit score is one of the most significant factors lenders consider when determining your mortgage rate. A higher score generally qualifies you for a lower interest rate, saving you substantial money over the term of your mortgage.

Before applying for a mortgage:

Pay down existing debts
Avoid opening new credit lines
Ensure all bill payments are up-to-date
Correct any errors on your credit report

Even a small improvement in your credit score can have a big impact on your mortgage terms.

(Related cluster blog: Things to Avoid When Applying for a Mortgage)

Tip 3: Compare Lenders — Not Just Banks

Many first-time buyers default to getting a mortgage through their existing bank. While convenient, it may not yield the best rate.

Mortgage brokers can access a wide range of lenders, including banks, credit unions, and alternative mortgage providers. Brokers often have access to rate discounts and exclusive promotions not offered directly to the public.

By working with an experienced mortgage broker, you can:

Compare multiple offers side-by-side
Find flexible mortgage features suited to your needs
Save both time and money

This is especially important when considering alternative mortgage lenders in Surrey’s dynamic housing market.

(Related cluster blog: Best Alternative Mortgage Lenders in Canada)

Tip 4: Consider the Full Cost of Your Mortgage

A low interest rate is important, but it’s not the only factor that determines the true cost of your mortgage.

When comparing offers, review:

Prepayment penalties
Portability options
Closing costs
Flexibility for lump sum payments

Sometimes a slightly higher rate with more flexible terms ends up costing less in the long run. Ensure you’re factoring in your future plans — like upsizing, refinancing, or moving — when choosing your mortgage.

Tip 5: Time Your Application Strategically

Mortgage rates fluctuate based on economic conditions, Bank of Canada policy announcements, bond market movements, and lender competition.

Applying for a mortgage when bond yields are lower — or during a lender’s promotional period — can help you lock in a better deal. Many buyers in 2025 are finding excellent opportunities because fixed mortgage rates are stabilizing after two years of volatility.

Staying in close contact with a mortgage broker ensures you can move quickly when favorable rate windows open.

Local Insight: Surrey and the Fraser Valley

In Surrey and nearby communities like Cloverdale, Fleetwood, and Newton, the spring 2025 market is expected to be active but relatively balanced. More inventory is coming online, and federal affordability measures, such as the GST exemption for new homes under $1M, are expected to further boost first-time buyer activity.

Home prices are more moderate compared to Metro Vancouver, but competition is growing for well-priced detached homes, townhouses, and condos — making early mortgage preparation critical for success.

FAQs About Securing the Best Home Purchase Mortgage Rates in Surrey

How much does my down payment affect my mortgage rate?

Your down payment size can impact your options. A down payment of at least 20% can often secure better rates because it removes the need for mortgage insurance (like CMHC coverage). However, even insured mortgages with 5%–19.99% down can sometimes offer lower rates from certain lenders due to government-backed protections.

Should I choose a fixed or variable rate for the best deal?

In 2025, fixed rates have become more attractive due to their stability and affordability. Variable rates may offer lower initial payments, but carry more risk if the Bank of Canada increases rates later in the year. Your choice should depend on your risk tolerance, budget stability, and how long you plan to stay in your home.

Can a mortgage broker really get me a better deal?

Yes. Mortgage brokers work with multiple lenders, including many not accessible directly by the public. They can find discounted rates, special promotions, and tailored solutions that banks may not offer. Plus, brokers advocate for you — not the lender — during the negotiation process.

How long does a mortgage pre-approval last?

Most pre-approvals are valid for 90 to 120 days. During that time, your rate is locked, protecting you from increases while you shop for a home.

Does my employment type affect my mortgage rate?

It can. Salaried employees often have the easiest qualification path. If you are self-employed or have variable income (like commissions or contract work), you may face stricter document requirements and slightly different product options. An experienced mortgage broker can help you navigate these situations and still secure competitive rates.

Final Thoughts: Be Mortgage-Ready Before You House Hunt

Securing the best home purchase mortgage rate is about more than just getting a low number on paper. It’s about being financially prepared, knowing your options, and having a strategy that matches your life goals.

In busy markets like Surrey, Abbotsford, and Langley, buyers who secure pre-approvals, compare lenders, and act quickly are consistently landing better deals — and saving tens of thousands over the life of their mortgage.

The key is starting early, working with the right advisor, and being ready to move when the right property comes along.

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