Update Feb 2017: Mortgages, Real Estate and Politics!!!

Marci • February 2, 2017

Happy 2017 Everyone!

Wow!! Where did January go? Just like that it is almost Spring in Vancouver! (Although, I hear we might have a bit more Winter/Snow coming this weekend). I am reaching out with an update on the many changes/announcements in the mortgage industry over the last few months. Don’t worry – when I say “politics” in the subject here, I mean Canadian and BC politics – No Trump talk here!!!

There have been a number of mortgage policy announcements, rate changes, and Government program launches/changes recently. If you are overwhelmed and tired of hearing about mortgages and real estate, you are not alone!! I am hoping that I can help to “clear the clutter” and offer some explanations for what’s really happening.

Here is a summary of the major items and some links to resources if you want to read more and dig deeper!

October 2016 – Federal Government Mortgage Changes:

On October 3rd, 2016 the Federal Government announced changes to mortgages in Canada that have impacted how much borrowers qualify to borrow and the types of mortgages that can be insured. The changes were extensive and were rolled out in two stages. Click Here for my blog post outlining the changes in detail and here for my initial email/reaction to the changes. This video also helps break down what happened and why!

Generally speaking, there has been confusion about the changes. December 2016 saw all lenders change policies for all mortgage lending and increase fixed interest rates across the board to help cover extra costs associated with the new government policies!

Just this week, a parliamentary committee has convened in Ottawa to review the changes. This review is the result of a HUGE out pouring of concern by the Mortgage Broker industry, the banks and consumers in general, regarding the policies. Mortgage Professionals Canada (MPC), the national industry association for Mortgage Brokers, will be presenting a paper in Ottawa this week that outlines the concerns we have for the industry and for consumers. To quote MPC:

“Put simply, the government has made too many changes in too short a period of time. It appears that the Ministry of Finance, OSFI and CMHC are working toward a common goal but are not aligned in their strategy.”

The primary message from all parties is that the changes were perhaps too much all at once and overall they reduce competition and harm consumers. Click to read the full submission from MPC……It is a long, but interesting read! (OK – maybe not so interesting unless you are a “mortgage geek” like me!!)

B.C. Government Home Loan Program

On December 15th, 2016 the BC Government announced a program to help First Time Buyers with an interest free loan to be use towards a down payment. The program details can be found HERE. The first applications for this “free” money started being accepted on January 15, 2017. The loan comes with costs and is technically not free, but it can be beneficial for some buyers. As everyone’s situation is very different, please contact me directly to talk about your particular needs and to see if this loan program might be a fit for you!!

CMHC – Insurance Premium Increases

On January 17, 2017, CMHC announced mortgage insurance premiums will increase effective March 17, 2017. Overall the increases were quite minimal. The biggest impact will be felt by buyers with a 5 – 10% down payment and especially where some of the down payment is from non-traditional (borrowed) sources.(FYI – the BC Home Loan is a “borrowed source” of down payment and = higher mortgage insurance premiums). I published a blog post here that outlines the premium changes and gives some examples of the impact.

Foreign Buyer Tax

The big story this past summer was the introduction by the BC Government of a 15% Foreign Buyer tax on home purchases made by foreign buyers. There were some issues with the way the tax was implemented (with just 6 days warning) and also in that the policy included Permanent Residents to Canada who might have been working and living here for several years. This past weekend, the BC Government announced an amendment to the tax whereby residents holding a work permit and filing taxes in Canada, will now be exempt. We continue to await further details. This article in the Financial Post outlines the latest press release by Premier Christy Clark. CLICK HERE Stay tuned for more details as we get them…..

Bank of Canada Rate – No Changes

The most recent Bank of Canada Announcement was on January 18th, 2017 and no changes were made. You will find the details of that announcement here.

Prime is still 2.70%! We can still get Variable Rate mortgages at prime MINUS 0.35% to 0.50%. (IE: 2.20% 5 year Variable rate still exists). The fixed rate mortgage rates increased in December and there is now tiered pricing with all lenders depending on down payment, property type, and amortization. A standard “rate sheet” is now super tricky as every deal will have different nuances and in the world of mortgages since October 3rd, 2016, different deals = different rates!!

Call or email me to talk about your situation and for a personalized rate quote. marci@askmarci.ca or 604-816-8950

Increased BC Home Owner Grant Threshold

The Government of British Columbia released news on January 10th, 2017 that they have increased the home owner grant threshold from $1.2M to $1.6M, a 33% increase over last year. The goal was to help keep property taxes affordable, and to ensure all those who received the grant in 2016 will also receive it in 2017. Yes, I blogged about this too and you can find details here!

Phew – if you made it through all that and you are still reading – THANK YOU!! That was quite honestly a lot of stuff to cover.

As always, please reach out to me directly to ask questions and to discuss your personal situation. Today, more than ever, each mortgage borrower will face different policies, rates and products. As an Independent Mortgage Broker, I can offer you those choices and options.

All the best,

Marci

Share

How to Get a Mortgage for a Second Property

By Marci Deane • January 14, 2026
Thinking About Buying a Second Property? Here’s What to Know Buying a second property is an exciting milestone—but it’s also a big financial decision that deserves thoughtful planning. Whether you're dreaming of a vacation retreat, building a rental portfolio, or looking to support a family member with a place to live, there are plenty of reasons to consider a second home. But before you jump in, it's important to understand the strategy and steps involved. Start with “Why” The best place to begin? Clarify your motivation. Ask yourself: Why do I want to buy a second property? What role will it play in my life or finances? How does this fit into my long-term goals? Whether your focus is lifestyle, income, or legacy planning, knowing your “why” will help you make smarter decisions from the start. Talk to a Mortgage Expert Early Once you’ve nailed down your goals, the next step is to sit down with an independent mortgage professional. Why? Because buying a second property isn't quite the same as buying your first. Even if you’ve qualified before, financing a second home has unique considerations—especially when it comes to down payments, debt ratios, and how lenders assess risk. How Much Do You Need for a Down Payment? Here’s where the purpose of the property really matters: Owner-occupied or family use: You may qualify with as little as 5–10% down, depending on the property and lender. Income property: Expect to put down 20–35%, especially for short-term rentals or if it won’t be occupied by you or a family member. Your down payment amount can be one of the biggest hurdles—but with strategic planning, it’s often manageable. Ways to Fund the Down Payment If you don’t have the full amount in cash, you might be able to tap into your current home’s equity to help fund the purchase. Here are a few ways to do that: ✅ Refinance your existing mortgage to access additional funds ✅ Secure a second mortgage behind your current one ✅ Open a HELOC (Home Equity Line of Credit) ✅ Use a reverse mortgage (in certain age-qualified scenarios) ✅ Take out a new mortgage if your current home is mortgage-free These options depend on your income, credit, home value, and overall financial picture—another reason why having a pro in your corner matters. Second Property Strategy: It’s More Than Just Numbers This purchase should be part of a bigger financial plan—one that balances risk and reward. It’s about: Assessing your full financial health Maximizing your existing assets Minimizing your cost of borrowing Aligning your purchase with your long-term goals Ready to Take the Next Step? There’s no one-size-fits-all answer when it comes to buying a second property. That’s why it helps to talk things through with someone who understands both the big picture and the small details. If you’re ready to explore your options and build a plan to make that second property dream a reality, let’s connect. I’d love to help you take the next step with confidence.

What Is a Cashback Mortgage and How Does It Work?

By Marci Deane • January 7, 2026
Cashback Mortgages: Are They Worth It? Here’s What You Need to Know If you’ve been exploring mortgage options and come across the term cashback mortgage , you might be wondering what exactly it means—and whether it’s a smart move. Let’s break it down in simple terms. What Is a Cashback Mortgage? A cashback mortgage is just like a regular mortgage—but with one extra feature: you receive a lump sum of cash when the mortgage closes . This cash is typically: A fixed amount , or A percentage of the total mortgage , usually between 1% and 7% , depending on your mortgage term and lender. The money is tax-free and paid directly to you on closing day. What Can You Use the Cashback For? There are no restrictions on how you use the funds. Here are some common uses: Covering closing costs Buying new furniture Renovations or home upgrades Paying off high-interest debt Boosting your cashflow during a tight transition Whether it’s to help you settle in or catch up financially, cashback can offer a helpful buffer— but it comes at a cost . The True Cost of a Cashback Mortgage Here’s the part many people overlook: cashback mortgages come with higher interest rates than standard mortgages. Why? Because the lender is essentially advancing you a small loan upfront—and they’re going to make that money back (and then some) through your mortgage payments. So while the upfront cash feels like a bonus, you’ll pay more in interest over time to have that convenience. Breaking Down the Numbers It’s hard to give a blanket answer about how much more you’ll pay since it depends on: Your interest rate The cashback amount The mortgage term Your payment schedule This is why it’s important to run the numbers with a mortgage professional who can help you compare this option with others based on your personal financial situation. Are You Eligible for a Cashback Mortgage? Not everyone qualifies. Cashback mortgages generally come with stricter requirements . Lenders often want to see: Excellent credit history Strong, stable income Low debt-to-income ratio If your mortgage file includes anything “outside the box”—like being self-employed or recently changing jobs—qualifying for a cashback mortgage might be tough. What If You Need to Break the Mortgage? This is one of the biggest risks with cashback mortgages. If your circumstances change and you need to break your mortgage early, you could be on the hook for: Paying back some or all of the cashback you received, and A prepayment penalty (typically the interest rate differential or 3 months’ interest—whichever is higher) That can be a very expensive combination. So if there’s even a chance you might need to sell, refinance, or move before your term is up, a cashback mortgage might not be the best fit. Should You Consider a Cashback Mortgage? Maybe—but only with eyes wide open. Cashback mortgages can be helpful in the right scenario, but they’re not free money. They’re a lending tool that benefits the lender , and the key is knowing exactly what you’re agreeing to. Final Thoughts: Talk to an Expert First Choosing the right mortgage isn’t just about the lowest rate or the biggest perk—it’s about making a choice that fits your whole financial picture. If you’re considering a cashback mortgage, or just want to explore all your options, let’s talk. As an independent mortgage professional , I can help you weigh the pros and cons of various products, so you can make a confident, informed decision. Have questions? I’d be happy to help—reach out anytime.

Getting a Mortgage Shouldn’t Be Stressful—We Can Help

By Marci Deane • December 31, 2025
Buying a Home? Follow These 6 Key Steps for a Smooth Experience Buying a home is likely one of the biggest financial decisions you’ll ever make. It’s exciting—but it can also be overwhelming, especially when it comes to understanding how mortgage financing works. To help make the process smoother (and far less stressful), here are six essential steps every homebuyer should follow: 1. Start With a Mortgage Professional—Not MLS It’s tempting to start your home search by scrolling through listings and booking showings—but the real first step should be speaking with an independent mortgage professional . Unlike a bank that offers only one set of products, an independent mortgage expert has access to multiple lenders and options . That means better advice, better rates, and a better chance of finding a mortgage that truly fits your needs. 2. Build a Personalized Mortgage Plan Unless you’re buying your home with cash, you’ll need a solid financing strategy. That means: Reviewing your credit score Running affordability calculations Exploring different mortgage types, terms, and features Understanding down payments and closing costs The sooner you start planning, the more confident you’ll feel. Don’t wait until you’ve found the “perfect” property— get ahead of the process now . 3. Figure Out What You Can Actually Afford What a lender says you can borrow doesn’t always match what you can comfortably pay each month. Take a close look at your budget, lifestyle, and spending habits. Think about how your mortgage payments, property taxes, utilities, and other costs will fit into your everyday cash flow. Avoid the stress of being house-poor by knowing your real-life affordability , not just your paper pre-approval. 4. Get Pre-Approved the Right Way A true mortgage pre-approval isn’t just entering numbers into an online calculator. It means: Completing a mortgage application Submitting all your required documentation Having a mortgage professional fully assess your file When you’re officially pre-approved, you’ll shop for homes with confidence , knowing what you qualify for and that you’re financially ready. 5. Submit Your Documents Promptly and Stay Flexible Once you find a property and your offer is accepted, time is of the essence. That’s when all the upfront work you’ve done really pays off. Be ready to: Provide additional documentation if requested Respond to your mortgage professional quickly Stay flexible and proactive throughout the approval process Your lender needs to verify everything before finalizing the loan, so staying organized is key. 6. Don’t Make Big Financial Changes Before Closing Once you’ve secured financing and waived your conditions, freeze your finances until after you get the keys. Seriously—don’t: Change jobs Apply for new credit Take out a loan Make a large withdrawal Even small changes can throw off your approval. Keep everything status quo until you officially take possession. Recap: 6 Steps to a Smooth Home Purchase Connect with an independent mortgage professional Create a mortgage plan early Know what you can afford (not just what you qualify for) Get fully pre-approved Stay on top of documentation Avoid major financial changes before possession Ready to Buy with Confidence? If you’re thinking about buying a home—or just want to know what’s possible—let’s talk. I’ll help you map out a personalized plan that makes your homebuying journey feel simple, strategic, and stress-free. Reach out anytime. I’d love to help you get started.