7 Mortgage Myths That Quietly Cost BC Buyers Money

Rabinder Dhillon • June 15, 2026

A lot of what people believe about mortgages is out of date or simply untrue, and those myths can cost real money or delay a purchase for years. Here are seven of the most common ones I hear, and the plain truth behind each.


Myth 1: You Need 20 Percent Down to Buy a Home

This one keeps more people renting than any other. In reality, you can buy with as little as 5 percent down on the first 500,000 dollars of the price. With less than 20 percent down, your mortgage is simply insured, which is completely normal and gives you access to the best rates. Many buyers are ready years before they realize it.


Myth 2: Your Bank Gives You the Best Deal

Your bank can only offer its own products. As a broker, I compare many lenders, from major banks to credit unions and other lenders, to find the best fit for you. Loyalty to one institution often costs more than it saves.


Myth 3: The Lowest Rate Is Always the Best Mortgage

A low rate attached to the wrong terms can cost you far more over time. Restrictive penalties, limited prepayment privileges, and poor flexibility can quietly outweigh a small rate difference. The best mortgage is the one that fits your whole situation, not just the number on the sign.


Myth 4: Using a Mortgage Broker Costs You Money

For most residential mortgages, my services are free to you. The lender pays me when your mortgage funds, so you get access to many lenders and my guidance at no direct cost, rather than being limited to a single bank.


Myth 5: A Pre-Qualification Is the Same as a Pre-Approval

They are very different. A pre-qualification is a quick estimate with nothing verified. A pre-approval involves reviewing your documents and credit and comes with a rate hold. When you make an offer, only one of them carries real weight.


Myth 6: If You Are Self-Employed, You Cannot Get a Mortgage

Not true at all. Self-employed simply means your income needs to be presented the right way, and there are lenders and programs built specifically for business-for-self borrowers. Your smart tax planning does not have to work against you.


Myth 7: You Should Always Renew With Your Current Lender

Signing the renewal your lender mails you is rarely their best offer. Your renewal is a chance to compare the whole market and often improve your rate or terms. It takes a quick conversation to find out whether you can do better.


The Truth Is Usually Good News

Most mortgage myths make homeownership feel harder or further away than it really is. When you have the facts, the picture is often far more encouraging. I got into this work because I believe knowledge is power, and the more you understand, the fewer of these myths cost you money.


Heard something about mortgages that worried you? Ask Rabinder Dhillon and let's separate fact from fiction, with no pressure.

RABINDER
MORTGAGE BROKER

LET'S CONNECT

Stress-Testing Your Mortgage Affordability: Why It Matters

By Rabinder Dhillon • September 16, 2026
Buying a home is one of the biggest financial commitments you’ll ever make. That’s why lenders want to be sure you can handle your mortgage payments—not just today, but also if interest rates rise in the future. This is where the mortgage stress test comes in. Many Canadians hear the term but aren’t entirely sure what it means or how it affects them. Let’s break it down in plain language. What Is the Mortgage Stress Test? The stress test is a rule introduced by the federal government that requires all mortgage applicants to qualify at a higher rate than the one they’ll actually pay. Currently, you must qualify at the greater of your contract rate + 2% or the benchmark qualifying rate (set by the Office of the Superintendent of Financial Institutions). For example: If your lender offers you a 5-year fixed mortgage at 5.25%, you must show you could still afford the payments at 7.25% . Even if rates don’t rise that high, the stress test ensures you won’t be overextended if they do. Why Does It Matter? The stress test protects both borrowers and lenders by: Preventing over-borrowing : It ensures you don’t take on more debt than you can realistically handle. Preparing for rate hikes : With interest rates fluctuating, it’s a safeguard against sudden increases. Strengthening financial stability : It lowers the risk of defaults, protecting the housing market as a whole. While it can sometimes feel like a barrier—reducing the amount you qualify for—it’s ultimately designed to keep you from becoming “house poor.” How Does It Impact Buyers? The stress test can significantly affect your homebuying budget. For example, without it, you might qualify for a $600,000 mortgage, but with the stress test applied, you may only qualify for $500,000. That doesn’t mean your dream of homeownership is out of reach—it just means you may need to adjust expectations or explore other strategies, such as: Increasing your down payment Paying down existing debts Considering alternative lenders who may have different qualification standards Why Work With a Mortgage Professional? Every lender applies the stress test, but not every lender views your application the same way. An independent mortgage professional can: Shop multiple lenders to find the best fit Run affordability scenarios at different rates Help you understand how much house you can truly afford—without stretching your finances too thin The Bottom Line The mortgage stress test isn’t meant to stop you from buying a home—it’s there to protect you from financial strain down the road. By understanding how it works and planning ahead, you can make smarter choices and buy with confidence. If you’re thinking about purchasing a home, refinancing, or simply want to know how the stress test affects your options, connect with us today. We’ll help you stress-test your budget and find the mortgage solution that works best for you.

What to Expect in the Closing Process: A Step-by-Step Guide

By Rabinder Dhillon • September 9, 2026
You’ve found the right home, your offer’s been accepted, and your financing is approved—congratulations! But before you can pick up the keys and celebrate, there’s one more important stage: the closing process. Closing is the final step in your homebuying journey, where all the paperwork, legal details, and financial transactions come together. It can feel overwhelming if you don’t know what to expect, but with the right preparation, closing can be smooth and stress-free. Here’s a step-by-step guide to help you understand the process. Step 1: Hire a Lawyer or Notary A real estate lawyer (or notary, depending on your province) handles the legal side of closing. They will: Review the purchase agreement and mortgage documents Conduct a title search to confirm the seller has the legal right to sell the property Ensure the mortgage lender is properly registered on the title Handle the transfer of funds between you, the lender, and the seller Your lawyer or notary will be your main point of contact during closing, so choose one you trust and who communicates clearly. Step 2: Finalize Your Mortgage Your lender will send the mortgage instructions directly to your lawyer or notary. At this stage: You’ll provide proof of property insurance (lenders require this before releasing funds) You’ll confirm your down payment and closing costs are available in your lawyer’s trust account The lawyer will prepare all documents for your review and signature Step 3: Pay Closing Costs Closing costs typically range from 1.5% to 4% of the purchase price. These can include: Legal fees Title insurance Land transfer tax (where applicable) Adjustments for property taxes or utilities prepaid by the seller Home inspection or appraisal fees (if not already paid) Your lawyer will provide a final statement of adjustments so you know exactly how much is due on closing day. Step 4: Sign the Paperwork A few days before closing, you’ll meet with your lawyer or notary to sign all the necessary documents, including: Mortgage agreement Title transfer Insurance confirmations Statement of adjustments Bring valid government-issued ID to this appointment. Step 5: Transfer of Funds On the day of closing: Your lender sends the mortgage funds to your lawyer Your lawyer combines these funds with your down payment and pays the seller Legal ownership of the property is transferred into your name The lender is registered on title as a secured creditor Step 6: Get the Keys! Once the paperwork is filed and the funds have cleared, your lawyer will confirm that the transaction is complete. You’ll then get the keys to your new home—officially making it yours. The Bottom Line The closing process is a series of important steps, but with the right team in place, it doesn’t have to be stressful. By working closely with your mortgage professional and lawyer, you’ll have guidance every step of the way—from signing the documents to turning the key in the front door. If you’d like help preparing for the closing process—or want a clear breakdown of your own closing costs— connect with us today.