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

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What You Need to Know About Mortgages and Parental Leave

By Marci Deane • September 23, 2026
If the title of this article caught your attention, chances are your family is growing. Congratulations. If you’re thinking now is the right time to move into a home that better fits your growing family—but you’re unsure how parental leave affects your ability to qualify for a mortgage—you’re in the right place. Here’s the good news. Qualifying for a mortgage while on parental leave is possible when it’s done correctly. When you work with an independent mortgage professional, lenders can often qualify you based on your return-to-work income , as long as you can provide documentation confirming you have guaranteed employment waiting for you. A word of caution If you walk into a bank branch and disclose that you’re currently on parental leave, there’s a chance the bank will only allow you to qualify using your parental leave income. That can significantly reduce your borrowing power. Parental leave income is typically limited to 55% of your previous earnings, up to a weekly maximum. Qualifying on that amount alone can restrict your options and impact the type of home you can purchase. Why lender choice matters One of the biggest advantages of working with an independent mortgage professional is choice . You’re not limited to one lender’s rules or products. Some lenders will allow you to qualify using 100% of your confirmed return-to-work income , which can make a meaningful difference in your approval amount and overall options. What you’ll need to qualify Most lenders will require an employment letter that includes: Employer name (preferably on company letterhead) Your job title Original start date (to confirm probation has been completed) Confirmed return-to-work date Guaranteed salary upon return Lenders want reassurance that your income will resume once parental leave ends. You may also be asked to provide income history from the past couple of years, which is standard for most mortgage applications. One important note Whether or not you actually return to work after parental leave is entirely your decision. From a mortgage perspective, qualification is based on having a confirmed position available to you at the time of approval. If you have questions about qualifying for a mortgage while on parental leave—or anything mortgage-related—please connect anytime. I’d be happy to walk you through your options and help you plan with confidence.

Need Funds Between Buying and Selling? Here’s How Deposit Loans & Bridge Financing Help

By Marci Deane • September 16, 2026
You’ve outgrown your current home. It no longer fits your life, so moving makes sense. And you’re not interested in juggling two properties. Selling first and buying something new feels like the right move. Ideally, you want possession of the new home before leaving the old one. That overlap makes moving easier, reduces stress, and gives you time to paint, renovate, or settle in before the boxes arrive. But there’s a common challenge. What if the down payment for your next home is tied up in the equity of the one you’re selling? That’s where bridge financing comes in. How bridge financing works Bridge financing temporarily unlocks equity from your current home once it has a firm sale . It bridges the gap between selling your existing property and purchasing your next one, allowing you to use that equity toward your down payment. What about competitive markets? In a hot market, a strong offer often means a larger deposit . If you don’t have that cash sitting in your account, but you do have equity, a deposit loan can help you compete with confidence. The non-negotiable requirement To qualify for bridge financing or a deposit loan, your current home must have a firm, unconditional sale . No firm sale = no bridge or deposit loan. Lenders need certainty to calculate available equity and manage risk. Bottom line A firm sale is the key that unlocks bridge financing and deposit loans. If you’re planning a move and want to understand how these options could work for you, let’s talk. I’m always happy to walk you through your options and help you plan your next step with confidence.

How to Qualify for a Mortgage After Bankruptcy in Canada

By Marci Deane • September 9, 2026
Financial setbacks happen. Bankruptcies and consumer proposals are more common than most people realize—and they don’t define your future. Going through one doesn’t mean homeownership is off the table forever. It simply means lenders want to see that you’ve taken control, learned from the past, and built a stronger financial foundation moving forward. What lenders look at after a bankruptcy or consumer proposal How long it’s been since your discharge Your discharge date matters. For lenders, this is your reset point. There’s no law that says you must wait a specific amount of time before applying for a mortgage, but the longer your track record after discharge, the stronger your application becomes. What matters most is how responsibly you’ve managed your finances since then. Your credit rebuild Re-establishing credit is critical. After discharge, most people start with a secured credit card and use it consistently and responsibly. To be considered fully re-established, lenders typically want to see: Two active trade lines At least two years of clean payment history Credit limits of around $2,500 on each No late or missed payments Your down payment or equity The more money you can put down—or the more equity you have when refinancing—the lower the risk for the lender. A stronger down payment often opens the door to better terms and more lender options. Your debt service ratios Lenders will also look closely at how much of your income goes toward housing and other debts. The stronger your income relative to your monthly obligations, the easier it is to qualify. Conventional vs. insured mortgage options To access the most competitive mortgage products, lenders typically want to see: At least two years plus one day since discharge Fully re-established credit Minimum down payment requirements met Mortgage insurance in place if your down payment is under 20% (through CMHC, Sagen, or Canada Guaranty) Total debt obligations generally not exceeding 44% of your gross income Alternative lending options Not every situation fits neatly into a bank’s box—and that’s where alternative lending can help. Independent mortgage professionals work with both traditional and alternative lenders, including those who specialize in complex financial situations. These lenders look at the full picture: equity, income stability, and your plan moving forward. While rates and terms may not be as competitive as prime lending, alternative financing can be an effective short-term solution—especially if you need a mortgage before your credit is fully rebuilt. Let’s talk about your next step Whether you’re planning ahead for the best possible mortgage—or need a solution sooner rather than later—there are options available. If you’d like help mapping out a clear path forward, reach out anytime. I’d be happy to review your situation and help you build a plan that gets you back into homeownership with confidence.