Kelowna Real Estate


Barry Gellner
Steve Kirk
Mike Kirk
RE/MAX Kelowna
Suite 100
1553 Harvey Ave.
Kelowna, BC
V1Y 6G1
Ph. 250-717-5000

Introduction To Mortgages

What is a mortgage - how do they really work?

A Mortgage is an interest in property provided by the borrower as security for a loan.


  • The borrower (mortgagor) receives funds
  • The lender (mortgagee) has an interest in the property until the loan is repaid.

Sources Of Mortgage Funding

  • Chartered Banks
  • Trust Companies
  • Life Insurance Companies
  • Credit Unions
  • Loan Companies
  • Finance Companies
  • Mortgage Brokers
  • Private Placements
  • Vendors (Sellers)

Types Of Mortgages

1. Conventional Mortgages


  • Loan cannot exceed 75% of the appraised value of the property


2. High Ratio Mortgages (up to 100% of the appraised value)


  • Loan can exceed 75% of the appraised value
  • Must be insured if arranged through a bank or trust company (most are insured by Canada Mortgage and Housing, CMHC, GE capital, others)


3. NHA Mortgages (Granted under The National Housing Act 1954)


  • Lenders are insured against loss by The Canada Mortgage and Housing Corporation or similiar insurers


4. Collateral Mortgage


  • A loan secured by a Promissory Note and then further secured by means of a mortgage on the property.


| Financing | Determine Your Affordable Price Range | Buyer Hidden Costs |
| Step-by-Step Buying Process | Introduction To Mortgages | Tips for buyers | Tips for Sellers |
| Choosing A Realtor | Current Properties For Sale |


"Serving The Kelowna Real Estate Market"


Local 250-717-5000
TOLL FREE Barry at 1-800-663-5770