If you earn a $120,000 salary, you are doing well. But in the British Columbia housing market—from Vancouver to Kelowna—you likely want to know: How much house can I actually buy?
While your income is a great start, the bank looks at more than just your paycheck. As a BC mortgage expert and winner of the Best Newcomer Broker of the Year (2017) and a Top 75 Broker in Canada since 2019, I help people across the province find the right home loan.
This guide will help you understand your borrowing power in today’s BC market.
Why Your Salary is Just the Starting Point
Earning $120,000 is a strong foundation. However, lenders in BC look at your “full financial picture.” They want to make sure you can afford your mortgage even if life gets expensive.
When you apply now, lenders look at:
- Your total income and monthly bills.
- Your credit history (do you pay bills on time?).
- How much money you have saved for a down payment.
- Any money you already owe (car loans or credit cards).
- If you work for a company or work for yourself.
Key Factors That Change Your Mortgage Amount
To get the best mortgage rates in BC, you need to understand the four “big” factors lenders check.
Your Credit Score
Your credit score is like a grade for how you handle money. A high score helps you get lower interest rates. If your score isn’t perfect, don’t worry. My team can help you with tips for improving your credit score so you can qualify for a better loan.
The Power of Your Down Payment
The more money you put down upfront, the less you pay every month. In expensive areas like Surrey or Vancouver, saving a large down payment can be hard. We offer special borrowed down payment services and can connect you with private lenders in BC to help you get into a home faster.
Your Current Debts
Lenders check your debt-to-income ratio. If you have big car payments or credit card debt, you might qualify for a smaller mortgage. One smart trick we use is debt consolidation. We can often combine your high-interest debts into your mortgage, which lowers your monthly costs and helps you afford a nicer home.
Your Job Type
Are you an entrepreneur? Getting a mortgage is often harder for business owners. Traditional banks sometimes don’t understand how business income works. We specialize in mortgages for the self-employed. We use “Stated Income” programs that look at your actual cash flow, not just what is on your tax returns.
The Best Way to Get Mortgage Pre-Approval
Don’t go house hunting without a plan. A mortgage pre-approval tells you exactly what you can afford. It also shows BC sellers that you are a serious buyer.
Our Simple 4-Step Process:
- Chat with Us: We talk about your goals and your BC lifestyle.
- Paperwork: We help you gather your pay stubs and tax forms.
- Application: My team does the heavy lifting to make it stress-free.
- Approval: You get a clear budget so you can shop for homes with confidence.
Why Use a BC Mortgage Broker Instead of a Bank?
In BC, you have many choices. You could go to a big bank, but they only offer their own products. Using an expert mortgage broker gives you an advantage:
- More Choices: We work with over 300 lenders, including big banks, credit unions, and B-lenders.
- Lower Rates: Brokers often find better deals than what you see on a bank’s front window.
- Local Knowledge: We understand the specific taxes and rules for British Columbia real estate.
- Complex Files: If the bank said “no” because of your credit or job, we often have uninsured mortgage solutions that can say “yes.”
Get Your Answer Today
A $120,000 salary is a great tool for building wealth in British Columbia. But every person is different. To find out exactly how much you can afford, you need a custom plan.
Stop guessing and start planning. Let’s look at your numbers together.
Author Bio
Asim Ali is a Principal Mortgage Broker in BC. With over 10 years of experience, he helps families from Victoria to Prince George find the best mortgage for their needs. He is known for making the hard parts of money easy to understand.
Frequently Asked Questions (FAQ)
How much does a mortgage broker cost?
In most cases, the lender pays us, not you! You get expert advice for free.
How long does it take to get approved in BC?
Usually, it takes 1 to 2 weeks. We work fast to make sure you don’t miss out on your dream home.
What if my bank denied my renewal?
Don’t panic. If your bank says no, we can often find alternative mortgage options to keep you in your home.