Case Study · Residential / Prime

A Job Started in July and Savings Just Short of 10%: A Major Bank's Insured Mortgage Bought a First Condo at 90% in New Westminster

A single first-time buyer was purchasing a recently updated one-bedroom-and-den condo in New Westminster, close to SkyTrain and shopping, valued at about $450,000.

Closed in 2023 · Published October 18, 2026

Residential
Prime lender
Insured
Purchase
First-time buyer
New Westminster

Value: about $450,000
Insured mortgage: about $400,000 plus the premium
Loan-to-value: 90% of the value
Credit score: 771
Term in 2023: five-year fixed, 25-year amortization

The Situation

A single first-time buyer was purchasing a recently updated one-bedroom-and-den condo in New Westminster, close to SkyTrain and shopping, valued at about $450,000.

The Challenge

The client had started their current job as a mechanic in July 2023, on about $110,000 a year, a few months before the purchase. The 10% down payment, about $45,000, was a little more than the savings of about $44,000 in their accounts, and closing costs would also come from upcoming pay.

The Solution

In 2023 we placed an insured mortgage of about $400,000 plus the premium with a major Canadian bank, 90% of the value, on a five-year fixed term with a 25-year amortization. The bank counted their salary from their employment letter and pay stubs, and a 771 score on a mature credit file with no debt carried ratios of about 39%.

The Outcome

The client bought a first home with a down payment saved entirely from their own earnings.

Run the numbers

Mortgage Insurance Calculator

This first condo was an insured purchase with 10% down. See the insurance premium on your own price and down payment.

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Step 1 · Your purchase

Insurance program

Borrowed down payment (Flex 95) — borrowing your 5% down payment from a line of credit or loan is allowed with strong credit. It raises the 5%-down premium from 4.00% to 4.50% (the loan payment counts in your debt ratios). Only affects purchases with less than 10% down.

Purchase price

Buying new construction? Enter the price including the 5% GST — insurers calculate the premium on the GST-inclusive price. Insured mortgages cap at $1,499,999 (20% down required at $1.5M+).

Down payment

10% = $90,000

Amortization

Province

PST on the insurance premium is paid at closing in ON (8%), QC (9%) and SK (6%). Other provinces: none.

Insurance premium

$25,110

3.10% of $810,000 loan @ 90.0% LTV

Breakdown

Purchase price$900,000

Down payment$90,000 · 10.0%

Loan before insurance$810,000

Insurance premium (3.10%)$25,110

Total insured mortgage$835,110

Premium can be added to (financed in) the mortgage. PST on the premium, where applicable, is paid in cash at closing.

Premium curve · 8% → 25% down

Watch how the insurance premium drops as you raise your down payment — it hits $0 once you reach 20% (no insurance needed). The curve starts at this home's federal minimum down payment. The marker shows where you are right now.

What this calculator does that most don't

Charges the provincial sales tax on the premium where it applies (ON 8%, QC 9%, SK 6% — Manitoba removed its in 2020) — due in cash at closing, which most calculators quietly omit
Standard insured AND Sagen Insured Stated Income (self-employed) in one tool — switch the program to see the higher stated-income premium
Knows the December 2024 rules: max insured price $1,499,999 (high-ratio, under 20% down — not to be confused with the $999,999 insurable cap) and the first-time-buyer OR new-build gate on 30-year insured amortization, with the 0.20% surcharge applied

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Questions and answers

Questions about this file

Can you get a mortgage a few months into a new job?+

Yes. In this 2023 file the client had started as a mechanic in July 2023, on about $110,000 a year, a few months before the purchase, and a major Canadian bank counted the salary from the employment letter and pay stubs.

What if savings are just short of the down payment?+

It can still work. In this 2023 file the 10% down payment, about $45,000, was a little more than the savings of about $44,000 in the client's accounts, and the down payment was saved entirely from the client's own earnings.

How much was put down?+

10%. In this 2023 file the client put 10% down, about $45,000, and the bank placed an insured mortgage of about $400,000 plus the premium, 90% of the value.

What credit carried the file?+

A 771 score. In this 2023 file a 771 score on a mature credit file with no debt carried ratios of about 39%.

What term did the client take?+

A five-year fixed term. In this 2023 file the insured mortgage was on a five-year fixed term with a 25-year amortization.

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