Top Mortgage Questions Surrey Homebuyers Ask – Answered Step by Step

Buying a home is one of the biggest financial decisions you will make, and it is natural to have questions especially in competitive markets like Surrey and Abbotsford. Understanding how mortgages work, what lenders look for, and how to prepare can help you buy with confidence.

At Home Ease Mortgages, we work closely with local buyers every day. Below, we answer the most common mortgage questions Surrey homebuyers ask, step by step.

1. How Much Can I Afford to Borrow?

This is usually the first question buyers ask.

Lenders determine affordability based on:

Household income
Credit score and repayment history
Existing debts (car loans, credit cards, student loans)
Down payment amount
Current mortgage rates

Most lenders in Canada also apply the mortgage stress test, ensuring you can handle higher interest rates in the future.

A mortgage broker in Surrey or Abbotsford can provide a precise affordability assessment before you start house hunting.

2. How Much Down Payment Do I Need?

The minimum down payment depends on the purchase price:

5% on the first $500,000
10% on the portion between $500,000 and $999,999
20% for homes priced at $1 million or more

Buyers with less than 20% down will need mortgage default insurance.

Local first-time home buyers in Surrey often combine savings, RRSPs (Home Buyers’ Plan), and gifted funds for their down payment.

3. What Credit Score Do I Need to Get Approved?

Credit requirements vary by lender, but generally:

A score of 680+ qualifies for the best rates
Scores between 600–679 may still be approved with conditions
Below 600 may require alternative lending solutions

A trusted mortgage broker in Abbotsford or Surrey can help improve your application or find flexible lender options.

4. Should I Choose a Fixed or Variable Mortgage?

This is one of the most important mortgage decisions.

Fixed-Rate Mortgage

Predictable payments
Protection from rate increases
Ideal for risk-averse buyers

Variable-Rate Mortgage

Often lower starting rates
Payments may change with market conditions
Suitable for buyers comfortable with some fluctuation

Your choice should align with your financial stability and long-term plans.

5. Why Should I Get Pre-Approved Before Buying?

A mortgage pre-approval:

Confirms your budget
Locks in an interest rate
Strengthens your offer in competitive Surrey markets
Prevents last-minute surprises

In fast-moving areas like Surrey and Abbotsford, pre-approval is essential.

6. What Are Closing Costs and How Much Should I Budget?

In addition to your down payment, buyers should budget 1.5%–4% of the purchase price for closing costs.

These may include:

Legal and notary fees
Property tax adjustments
Home inspection and appraisal
Title insurance

Your mortgage broker will help you estimate these costs upfront.

7. Can I Qualify If I Am Self-Employed or New to Canada?

Yes… there are mortgage options for:

Self-employed buyers
Newcomers to Canada
Commission-based or contract workers

Lenders may assess income differently, but a local mortgage expert can structure your application effectively.

8. What Happens on Mortgage Closing Day?

On closing day:

Legal documents are signed
Mortgage and down payment funds are transferred
Title is registered in your name
Keys are released and possession occurs

Your mortgage broker coordinates with your lawyer and lender to ensure a smooth closing.

9. Why Use a Local Mortgage Broker in Surrey or Abbotsford?

A local broker provides:

Access to multiple lenders
Better rate negotiation
Knowledge of local property markets
Personalized guidance from application to closing

Working with a mortgage broker often saves both time and money.

10. How Can Home Ease Mortgages Help?

At Home Ease Mortgages, we help Surrey and Abbotsford homebuyers:

Understand their options clearly
Secure competitive mortgage rates
Navigate lender requirements
Close with confidence
We believe in people first numbers second.

Final Thoughts

The mortgage process does not have to be confusing. When you understand the answers to the most common questions and work with a trusted local expert you can move forward with confidence.

If you are buying a home in Surrey or Abbotsford, Home Ease Mortgages is here to guide you every step of the way.