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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Monthly vs. Biweekly Mortgage Payments: Which Is Better?

By Marci Deane • October 14, 2026
How Mortgage Payment Frequency Affects What You Pay Over Time You’ve probably heard the saying that there are two certainties in life: death and taxes. When it comes to your mortgage, there’s really just one certainty—you’ll repay what you borrow, plus interest. What is flexible, though, is how often you make your mortgage payments. And that choice can have a meaningful impact on how quickly you pay down your mortgage and how much interest you pay over time. The Six Mortgage Payment Frequencies Most lenders offer the following payment options: Monthly – 12 payments per year Semi-monthly – 24 payments per year Bi-weekly – 26 payments per year Weekly – 52 payments per year Accelerated bi-weekly – 26 payments per year Accelerated weekly – 52 payments per year Standard Payment Frequencies The first four options are designed to align with how you get paid. For example: Paid monthly? Monthly mortgage payments may make sense. Paid every two weeks? Bi-weekly payments can align nicely with your cash flow. With these standard options, regardless of how often you pay, the total amount paid over the year is the same —it’s simply divided into more frequent payments. What Makes “Accelerated” Payments Different Accelerated payments work differently—and this is where the real savings happen. With accelerated bi-weekly or accelerated weekly payments, you’re paying a slightly higher amount each time. That extra money goes directly toward reducing your mortgage principal, which lowers the interest you’ll pay over the life of the mortgage. A Simple Example Let’s assume a $1,000 monthly mortgage payment: Monthly: $1,000 once per month = $12,000 per year Semi-monthly: $500 twice per month = $12,000 per year Bi-weekly: $1,000 × 12 ÷ 26 = $461.54 every two weeks = $12,000 per year Accelerated bi-weekly: $1,000 ÷ 2 = $500 every two weeks = $13,000 per year With accelerated bi-weekly payments, you effectively make two extra payments per year without having to think about it. Those extra payments reduce your principal faster, which lowers interest costs over time. Accelerated weekly payments work the same way—you just make smaller payments more frequently. Why This Matters Long Term While it’s difficult to calculate exact savings due to variables like interest rates, terms, and amortization changes, maintaining an accelerated payment schedule over the life of your mortgage can reduce your amortization by up to three years and save a significant amount of interest. The Bottom Line Accelerated payments are a simple, automatic way to lower your overall cost of borrowing—without needing to make lump-sum payments or drastically change your budget. If you’d like to see how different payment frequencies would impact your mortgage specifically, feel free to reach out anytime. I’d be happy to walk through the numbers with you and help you choose the option that fits your goals.

How to Maximize Your Mortgage Renewal Opportunity

By Marci Deane • October 7, 2026
Your Lender Is Not Obligated to Renew Your Mortgage Many homeowners assume that if they’ve made every mortgage payment on time, their lender is automatically required to renew their mortgage at the end of the term. That’s a common belief—but it isn’t true. When you sign a mortgage, you’re agreeing to a contract for a specific term . Once that term ends, the lender has the legal right to either renew the mortgage or call the loan . There is no obligation to offer a renewal. In practice, most lenders do renew mortgages—but certain situations can prevent that from happening. Reasons a Lender May Decline to Renew A lender may choose not to renew if: Mortgage payments were missed during the term A bankruptcy or consumer proposal has occurred There is a separation or divorce Employment or income has changed A borrower on the mortgage has passed away The lender no longer prefers the property’s location or market The lender is no longer licensed to lend in Canada Even one of these factors can change how a lender views the risk. Why This Matters Because renewal is not guaranteed, waiting until the last minute can put you in a difficult position. Understanding this reality early gives you time and control. How to Protect Yourself at Renewal The best approach is to be proactive. Ideally, you should begin reviewing your options 120 days before your mortgage term ends . This gives you enough time to explore alternatives and make informed decisions—rather than reacting under pressure. Even if your current lender offers a renewal, that’s just one option , not automatically the best one. The lender that was right for you years ago may no longer offer the most competitive rate, terms, or flexibility today. The goal at renewal isn’t convenience—it’s reducing your total cost of borrowing and choosing terms that align with your current situation. Why Work With an Independent Mortgage Professional Working with an independent mortgage professional ensures someone is advocating for you , not the lender. Instead of being limited to one set of products, you can compare options across multiple lenders and choose the solution that best protects your interests. Final Thoughts Whether your lender is offering a renewal or not, the smartest move is to review all your options before signing anything. If your mortgage is coming up for renewal—or if you want to plan ahead—feel free to connect anytime. I’d be happy to help you protect your options and make a confident decision.

How Property Type and Condition Influence Mortgage Financing

By Marci Deane • September 30, 2026
Why the Property Matters When You’re Qualifying for a Mortgage When qualifying for a mortgage, lenders typically look at four core areas: Income Credit Down payment or equity The property itself Most buyers focus heavily on income, credit, and savings—and for good reason. But even if those boxes are checked, the property can still determine whether a mortgage is approved. Why Lenders Care About the Property From a lender’s perspective, the property is the collateral for the mortgage. In the unlikely event of default, they need to know the home can be sold quickly and at fair market value to recover their funds. Because of this, lenders are careful about the condition, value, and marketability of any property they finance. Homes that are in poor repair, unconventional, or overpriced can raise red flags—even when the borrower is well qualified. Appraisals Are Always Part of the Process Every mortgage requires an appraisal to confirm value. Insured mortgages (through CMHC, Sagen, or Canada Guaranty) often use an automated valuation model completed online. Conventional mortgages typically require a full, on-site appraisal by a certified appraiser. This appraisal is not optional and happens after an offer is accepted—not at the pre-approval stage. Why Pre-Approvals Aren’t a Guarantee A pre-approval is a great first step, but it only assesses you, not the property. Once you’ve made an offer, the lender must approve the specific home you’re buying. Understanding this upfront helps avoid surprises and confusion later in the process. The Risk of Buying Without a Financing Condition In competitive markets, buyers sometimes remove financing conditions to strengthen their offer. However, this comes with risk. If the appraisal comes back low—or the lender is concerned about the property’s condition—you could be denied financing after the offer is firm. In that scenario, your deposit may be at risk. Buying a Home That Needs Work If you’re considering a property that isn’t in perfect condition, there are solutions. A purchase plus improvements program allows you to buy a home and include renovation costs in your mortgage. The process is structured and requires planning, but it can be an excellent way to turn a fixer-upper into a great long-term investment. Final Thoughts Mortgage approval isn’t based solely on your finances—the property matters just as much. Knowing this ahead of time helps you make smarter offers, reduce risk, and plan more effectively. If you’re buying a property that needs work or want clarity on how a lender may view a specific home, feel free to reach out. I’d be happy to walk you through your options and help you plan with confidence.