Full-service mortgage brokerage specializing in residential, commercial, construction, development, and CMHC multi-unit financing.
Think you know how mortgages work? Think again.
In 2025, too many Canadians are making life-changing financial decisions based on advice that hasn’t kept up with reality. That friend who swore you need 20% down? Wrong. The family member who said your bank always gives the best rate? Not quite. Mortgage misinformation spreads fast—and it’s costing buyers and investors across BC and Alberta more than they realize.
Rates may be high, but so are the stakes. With new lending rules, shifting affordability, and tighter household budgets, the margin for error is razor-thin. Whether you’re trying to buy your first home in Vancouver or looking to grow your real estate portfolio in Edmonton, the wrong belief could delay your goals—or derail them altogether.
In this blog, we’ll cut through the noise. We’re breaking down the top mortgage myths holding people back—and revealing what’s actually true in today’s market. No fluff, no fear-mongering, just facts that matter right now. Let’s rewrite what you think you know about mortgages—one myth at a time.
This one’s a classic—and completely wrong.
While putting down 20% does help you avoid mortgage insurance, it’s far from a requirement to get your foot in the door. In fact, many first-time homebuyers in BC and Alberta are entering the market with as little as 5% down, thanks to insured mortgage options backed by CMHC and other providers.
Here’s how it breaks down: Mortgages with less than 20% down require insurance—but that insurance opens the door to ownership for buyers who have stable income and good credit but haven’t hit the magic savings number. In hot BC markets like Surrey or Kelowna, and even in Alberta’s growing hubs like Calgary and Red Deer, that’s a game-changer.
Let’s be real—saving $120,000 for a 20% down payment on a $600K home isn’t realistic for most people, especially with today’s cost of living. But many are still buying. Some lean on 10% with a little help from gift funds. Others take advantage of first-time homebuyer incentives, shared equity programs, or RRSP withdrawals under the Home Buyers’ Plan.
The bottom line? Waiting until you hit 20% might delay your goals unnecessarily.
That’s why Brightcap Financial helps first-time buyers in BC and Alberta explore insured options, structure creative down payment strategies, and make ownership possible—without waiting years to save.
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Myth #2: “The Bank Will Always Give You the Best Rate”
Think your bank has the best deal because you’ve “been with them forever”? Think again. One of the most persistent mortgage myths is that walking into your primary bank guarantees the lowest interest rate. In reality, posted rates are just the starting point—and not always the best option on the table.
Mortgage brokers, alternative lenders, and online comparison platforms have opened up a more competitive lending landscape. These channels don’t just offer different rates—they often offer more flexible terms and tailored solutions, especially for borrowers who don’t fit the traditional mold. From self-employed income to non-resident purchases, the big five banks aren’t always the most accommodating or aggressive on price.
Also, borrowers are catching on. As the Canada Mortgage and Housing Corporation (CMHC) stated, “More people are choosing variable-rate mortgages, which made up 41% of new loans in February 2025. This shift is mostly due to the sharp drop in rate premiums — from 2.25% in mid-2023 to just 0.2%. Many borrowers are also choosing short-term fixed-rate mortgages (3 to 5 years), which account for 32% of new loans. These choices suggest Canadians are hoping interest rates will drop and want more flexibility.”
This shift reflects a broader trend: Canadians are becoming more strategic and less reliant on traditional banks for the best deal. Loyalty doesn’t necessarily lead to savings—and as borrowing behavior changes, it's clear that flexibility and competition are taking center stage.
So loyalty won’t always save you money—but strategy will. Getting the best rate often means shopping around, doing the math, and working with professionals who understand the full landscape.
This myth clings tighter than your lender’s hold on your prepayment penalty—but it’s just not true.
Many Canadians believe once you lock into a mortgage term, you’re chained to it until maturity. In reality, today’s mortgage landscape is far more flexible—if you know where to look.
Porting allows you to take your existing mortgage to a new property, locking in your rate while sidestepping early-exit costs. Blending combines your current rate with a new one if you need more funds—ideal if your property’s value has increased or if you’re upgrading homes. Breaking your mortgage—while it may come with penalties—can make financial sense if the savings from a lower rate or new structure outweigh the cost. And early renewal? That’s an option too, especially when rates are forecasted to climb.
As the Government of Canada notes: “Your prepayment privileges allow you to: increase your regular payments by a certain percentage; make lump-sum payments up to a certain amount or percentage of the original mortgage amount.” These built-in features can quietly shorten your amortization, reduce interest paid over time, or help you pivot when life changes.
In Alberta’s active resale markets, these tools offer welcome agility. In BC—where prices are high and terms complex—savvy structuring can mean the difference between staying stuck and moving smart.
Whatever path you're on, knowing your exit options is half the battle. The other half? Having the right guide.
At Brightcap Financial, we help homeowners and investors across BC and Alberta explore the most strategic mortgage moves—whether that means staying put, moving up, or switching out. Because you're never stuck when your strategy is sound.
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It’s the myth that stops many before they even start: if your credit score isn’t spotless, your mortgage hopes are toast. But in 2025, perfection isn’t the benchmark—it’s the starting point for a bigger conversation.
Lenders today aren’t just staring at one number on your credit report. They’re analyzing your entire financial picture: income stability, debt load, savings patterns, and even the kind of employment you have. In BC and Alberta, where many buyers are self-employed, contract-based, or running small businesses, lenders have become more flexible in how they assess income. Pay stubs aren’t the only proof of responsibility.
According to Forbes Advisor Canada, “Your lender will look at factors such as your credit score, income and debt to determine what size of mortgage you will qualify for.” It’s not about acing one metric—it’s about showing you can manage the big picture.
If your credit score has taken a few hits, there are still paths forward. You might work with a broker who specializes in alternative lending. Or you might focus on reducing your debt ratio to improve affordability. Even things like a larger down payment or co-signing support can help rebalance the risk in a lender’s eyes.
For self-employed buyers, showing consistent income—even if it varies month to month—can carry more weight than you think. And for those rebuilding credit, lenders will often prioritize recent financial behavior over long-past missteps.
At Brightcap Financial, we work with borrowers across the credit spectrum—pairing each with the right strategy, lender, and structure. No score is too far gone, and no profile too complex. Because smart borrowing isn't about being flawless—it's about being prepared.
The mortgage world isn’t just full of forms and fine print—it’s full of folklore. From “you need 20% down” to “only banks give the best rates,” these myths have shaped how Canadians think about borrowing for far too long. But in 2025, where high rates, policy pivots, and shifting market conditions define the landscape, clinging to outdated beliefs can cost you—sometimes thousands.
What this journey reveals is simple: mortgages aren’t one-size-fits-all. They’re layered, local, and deeply personal. The truth? You don’t need perfect credit. You’re not chained to your rate. And there’s more than one path to homeownership, whether you’re buying a cozy condo in Kelowna or investing in a multiplex in Edmonton.
What you think you know might be holding you back. What you learn—with the right guidance—can move you forward.
At Brightcap Financial, we don’t just offer mortgage solutions—we dismantle myths, demystify the process, and deliver clarity. Whether you're a first-time buyer, a seasoned investor, or somewhere in between, our team is here to guide you through the noise with strategic advice tailored to BC and Alberta’s unique markets.
The myths are loud. Let Brightcap be louder—and smarter.
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