First-Time Home Buyer GST Rebate in Canada

Buying your first home in Vancouver or on Vancouver Island can feel like a big financial step — especially with rising home prices and added costs like GST on new construction.

The good news? A new federal incentive is helping first-time buyers save significantly on newly built homes.

Here’s what you need to know about the First-Time Home Buyers’ GST/HST rebate and how it could apply to your purchase.

What Is the First-Time Home Buyer GST Rebate?

The federal government has introduced a new rebate designed to reduce — or eliminate — the GST on newly built homes for first-time buyers.

This means:

  • No GST on new homes up to $1 million 
  • Reduced GST on homes between $1 million and $1.5 million 
  • Potential savings of up to $50,000

This rebate can be used alongside the existing GST/HST new housing rebate, acting as an additional benefit.

 

first time home buyer gst rebate

Important Timing

One key detail is that this program is backdated.

The rebate generally applies to agreements of purchase and sale entered into:

On or after March 20, 2025 and before 2031

This means if you’ve already signed a contract for a new home after that date, you may still be eligible.

Who Is Eligible?

To qualify for the First-Time Home Buyer GST rebate, you must:

  • Be a first-time home buyer
  • Be purchasing a newly constructed home or substantially renovated 
  • Intend to use the home as your primary residence
  • Meet the program requirements set by the CRA

In many cases, eligibility will be reviewed alongside your mortgage application and closing process.

 

first time home buyer tax exemption Canada

What This Means for Buyers in Vancouver & Nanaimo

For buyers in markets like Vancouver and Nanaimo, where new construction prices are often higher, this rebate can make a meaningful difference.

It may: 

  • Reduce your upfront costs 
  • Improve affordability 
  • Help you qualify for a mortgage more comfortably

Even if you’re purchasing closer to the $1M–$1.5M range, partial savings can still be significant.

Why It’s Important to Plan Ahead

Programs like this can be incredibly helpful, but they also come with specific rules, timelines, and application processes.

Working with a mortgage professional early ensures:

• You understand what you qualify for

• You structure your purchase correctly

• You don’t miss out on available incentives

If you’re considering buying a newly built home in Vancouver or on Vancouver Island, it’s worth understanding how this rebate could apply to you.

Get in touch with us at Mid Island Mortgage and we can go over your options!

New to Canada and Ready to Buy? Mortgage Options in Vancouver & Vancouver Island

Canada continues to welcome newcomers from around the world—including many families relocating from the United States. If you’re new to Canada and planning to settle in Vancouver, Vancouver Island, or surrounding communities like Nanaimo, you may be surprised to learn there are mortgage programs specifically designed for newcomers.

As mortgage professionals serving Vancouver Island and beyond, we help new residents understand their options and navigate the additional steps that can come with buying property in British Columbia.

Here’s what you need to know about New to Canada mortgage programs.

 

Vancouver Island neighbourhood homes for newcomers buying property

 

What Is a New to Canada Mortgage Program?

Many lenders offer insured and uninsured mortgage options for individuals who have recently settled in Canada.

These programs are available to:

  • Permanent Residents who have relocated to Canada within the past 60 months
  • Temporary Residents / Foreign Workers with valid Canadian work authorization (work permit)

Each lender has slightly different guidelines, so reviewing your specific situation early is key.

 

Down Payment Requirements

New to Canada programs can fall under insured, insurable, or uninsured mortgage categories.

For insured mortgages, the minimum down payment is:

  • 5% on the first $500,000
  • 10% on the portion above $500,000

Your exact down payment requirement will depend on a full review of:

  • Income
  • Credit history
  • Employment status
  • Property type

Every application is assessed individually, which is why working with an experienced Nanaimo mortgage broker can make the process smoother.

 

 

People relocating to British Columbia with moving boxes and exploring mortgage options

 

What About Work Permits and Credit History?

For temporary residents, most lenders require:

  • A valid work permit
  • Typically at least 6 months remaining on that permit

Establishing Canadian credit strengthens your application. In many cases, lenders may also request:

  • An international credit report from your country of origin
  • Confirmation of employment income in Canada

Because of these additional layers, underwriting can take slightly longer than a standard mortgage approval.

Starting the conversation early gives you time to prepare documentation and avoid unnecessary delays.

 

Important: Property Must Be Your Principal Residence

New to Canada mortgage programs are generally available for owner-occupied homes only. Rental or investment properties are not eligible under these programs.

Additionally, eligibility related to Canada’s foreign buyer regulations, foreign buyer ban, and applicable taxes must be confirmed by a lawyer. It is important for buyers to understand all associated costs before proceeding with a purchase.

 

Why Work With a Mortgage Professional Early?

Buying a home in a new country can feel overwhelming. Mortgage guidelines, documentation requirements, and timelines may differ from what you’re used to.

Our role is to:

  • Review your full financial picture
  • Identify the most suitable lender program
  • Help you prepare required documentation
  • Guide you through the approval process step by step

If you’re new to Canada and considering buying a home in Nanaimo or the surrounding areas, speaking with a mortgage professional early in the process can make all the difference.

 

Thinking About Buying in BC or Alberta?

Whether you’ve just arrived or have been settling in for a few years, understanding your financing options is the first step toward homeownership.

If you’re exploring a New to Canada mortgage, reach out to our team at Mid Island Mortgage today. We’re here to help you navigate the process with clarity and confidence.

How Much Do You Need for a Down Payment in BC?

January is here — which usually means thinking ahead and dreaming a little bigger.

(We’re all doing it, right?)

 

And for a lot of people, becoming a homeowner is one of those goals that pops up every year around this time. It feels exciting… and then quickly overwhelming. Because once you start looking into it, there are a lot of moving parts:

  • How much money do I actually need?
  • What even counts as a down payment?
  • And how am I supposed to save while still surviving?

It’s usually at this point that the goal quietly gets pushed aside for “someday.”

So instead of trying to tackle everything at once, let’s start with the foundation — THE DOWN PAYMENT

 

How Much Down Payment Do You Really Need?

In Canada, the minimum required down payment depends on the purchase price of the home, and this applies whether you’re buying in British Columbia or elsewhere in the country:

  • 5% on the first $500,000
  • 10% on any amount above $500,000

Here’s what that looks like in real numbers for a down payment:

  • $500,000 home → $25,000 down payment
  • $600,000 home → $35,000 down payment
  • $700,000 home → $45,000 down payment
  • $800,000 home → $55,000 down payment

This is often where people feel discouraged because the total sounds big. But the key isn’t saving it all at once. It’s building toward your down payment consistently.

 

how much for a down payment bc

Turning a Big Goal Into a Realistic Savings Plan

One of the biggest mistakes first-time home buyers make is thinking they need to “figure it all out” before they start saving.

 

Instead, start with a monthly number.

For example:

Saving $700 per month for 3 years gives you approximately $25,200.

That alone could cover the minimum down payment on a $500,000 home in British Columbia.

 

For many people, that $700 already exists (it’s just going elsewhere.) A common example is a car payment. Driving an older vehicle a little longer and redirecting that monthly payment toward a down payment in BC can make a meaningful difference over time.

This is exactly where realistic goal setting matters. (If you read last month’s blog on setting grounded financial goals, this is a perfect example of how small, consistent decisions add up!)

 

saving for down payment

Smart Ways to Build Your Down Payment Faster

Saving in a regular account is a start — but there are better tools that can help you grow your down payment in British Columbia faster and more efficiently.

1. First Home Savings Account (FHSA)

The FHSA was created specifically to help first-time buyers in British Columbia.

  • Contributions are tax-deductible
  • Growth and withdrawals for a first home are tax-free
  • You can contribute up to $8,000 per year, with a lifetime maximum of $40,000

This means you lower your taxable income and grow your down payment at the same time.

2. RRSPs (Including the Home Buyers’ Plan)

Contributing to an RRSP can also help with your down payment.

  • Contributions reduce your taxable income
  • You may receive a larger tax refund
  • Through the Home Buyers’ Plan, you can withdraw up to $35,000 from your RRSP for a first home (and repay it over time)

A common strategy is contributing to an RRSP or FHSA, receiving a tax refund, and then putting that refund directly into savings toward your down payment.

With tax season coming up in February, now is a great time to start planning ahead.

3. TFSA Savings

TFSAs are another flexible option for saving for a down payment in BC:

  • Growth is tax-free
  • Funds can be withdrawn at any time

No tax impact when using the money for a down payment

Many buyers use a combination of TFSA, FHSA, and RRSP funds depending on their income and timeline.

4. Gifts From Immediate Family

Some first-time home buyers also receive gifted funds from immediate family members.

These are allowed, but they must be documented properly, and the lender will want to see where the funds came from. A mortgage professional can guide you through this process so there are no surprises.

 

first time home buyer british columbia

 

Start With a Conversation

You don’t need a perfect savings plan or a fully formed budget to get started.

What you do need is clarity:

  • How much down payment you’ll need
  • What tools make the most sense for you
  • How long your timeline realistically is

Even small steps, like opening the right account or setting up an automatic transfer, move you closer to buying your first home in British Columbia.

 

If buying your first home is one of your goals this year, starting the conversation early can make the process feel far more achievable and far less overwhelming.

New Year, Clear Goals: A Practical Way to Get What You Want in 2026

Every January, we’re told to look back at what we didn’t accomplish and try harder this time. Bigger goals. More discipline. Less spending. Better habits.

But what if this year wasn’t about forcing change, and instead about resetting with intention?

For Nanaimo homeowners, the new year is a great time to reflect on more than just resolutions. It’s an opportunity to check in with your life, your finances, and your long-term goals.

Let’s shake up the way we approach goal setting in a way that’s realistic, grounded, and actually sustainable.

 

goal setting strategy

Shake Up Your Goals (Yes, Even the Financial Ones)

Traditional goal setting often follows the same pattern:

  • Look at last year
  • Focus on what didn’t work
  • Lower expectations “just to be safe”

Sometimes we write goals just because we think that’s what successful people do, and we end up not believing in them. The problem? If you don’t believe a goal is attainable, it’s hard to stay committed to it.

This year, instead of shrinking your goals, try resetting how you approach them.

 

reaching financial freedom vancouver

Step 1: Upload & Delete Last Year

Before setting new goals, it’s important to close the loop on the old ones.

Take a moment to reflect on last year:

  • What did you accomplish?
  • What didn’t happen?
  • How did it feel when you made progress (or didn’t?)

Then, let it go.

This isn’t about judging yourself or carrying guilt into the new year. It’s about acknowledging what happened and giving yourself permission to start fresh. Last year’s goals don’t define what’s possible for you now.

For homeowners, this might mean:

That’s okay. A reset starts with release.

Step 2: Dream Big – But Keep It Aligned With Your Values

Goal setting doesn’t have to be extreme to be meaningful.

Instead of asking “What should I do this year?” try asking: “What feels most important right now?”

Maybe it’s:

  • More space in your schedule and fewer rushed days
  • Feeling confident and organized in your finances
  • Making thoughtful decisions instead of last-minute ones
  • Creating long-term stability for yourself or your family

Be specific. Write it down. Revisit it often.

Belief matters here, and not in the magical sense you may be thinking, but in a practical one. If you don’t believe something is possible for you, you’re far less likely to take the small steps that lead there.

Much like we tell our kids during the holidays: you have to believe in order to receive. The same applies to goals (especially financial ones!)

 

2026 goal setting strategy

Step 3: Get Out of Your Own Way (and Notice the Small Wins)

Big goals are rarely achieved through big moments. Instead, they’re built through everyday choices.

If your goal is health-related:

  • You showed up to the gym
  • You chose a healthier option
  • You stopped at one cookie instead of five

If your goal is financial:

These are real wins – and they add up.

For Nanaimo homeowners, something as simple as reviewing your mortgage options before renewal can create clarity, reduce stress, and open opportunities you didn’t know existed.

A Grounded Approach to “New Year, New Me”

You don’t need a perfect plan, extreme discipline, or unrealistic expectations to move forward.

What you do need is:

  • A clean mental reset
  • Goals rooted in what matters to you
  • Awareness of the small steps that move you closer

Whether your focus this year is personal growth, financial stability, or making smarter decisions around your home, progress comes from consistency – not pressure.

If one of your goals involves your mortgage, home equity, or long-term financial planning, starting the conversation early can make all the difference and be that first small step towards making something happen.

Because sometimes, the most powerful resolution isn’t changing everything – it’s finally believing that change is possible.

 

Holiday Spending Guide: Stretch Your Budget Without the Stress

The holidays are a time for joy, generosity, and connection, but they can also bring financial stress. Between gifts, gatherings, and travel, it’s easy to overspend and face a credit card shock come January.

For many families across Vancouver and Vancouver Island, where the cost of living is already high, the holidays can put even more pressure on the budget. The good news? A little planning can make a big difference.

This year’s Financial Literacy Month theme is all about making your money go further, and that mindset fits perfectly with the holiday season. With some simple strategies, you can celebrate meaningfully, spend within your means, and start the new year without financial regret.

1. Start With a Realistic Budget

Before you buy your first gift or plan a dinner, set a spending limit that actually fits your finances.
 Include everything – gifts, food, travel, decorations, and even those last-minute extras.

💡 Pro tip: Try setting a total budget, then dividing it by the number of paydays left before the holidays. That gives you a realistic amount to spend each week.

 

Free Christmas lights Vancouver

 

2. Make a Gift Plan (and Stick to It)

Write down everyone you’d like to give to, then set a dollar limit per person. If you have a large family or friend group, suggest a Secret Santa or name draw to reduce the number of gifts. You’ll spend less, stress less, and can focus on finding one meaningful gift instead of many small ones.

💡 Gift idea: Consider giving experiences instead of things – like tickets to a local holiday market in Nanaimo, a free light display in Vancouver, or a winter walk with hot chocolate. Shared memories last longer than material gifts.

 

3. Track as You Go

Keep tabs on your spending throughout the season. Even a simple note on your phone or a quick check in your banking app can help you see where your money’s going before it gets away from you. Awareness keeps you accountable, and prevents the “how did I spend that much?” moment in January.

 

4. Plan for the Extras

Holiday costs aren’t just gifts. Meals, events, decor, and travel can add up fast – especially in high-cost areas like Vancouver. Estimate these extra expenses in advance and include them in your total holiday budget.

💡 Try this: Host a potluck dinner instead of covering the whole meal, or reuse last year’s decorations with a creative twist.

 

Holiday Budgeting Guide Vancouver

 

 

5. Set Yourself Up for Next Year

Once the holidays are over, start fresh by setting up a holiday fund. Even saving $25–$50 a month can cover next year’s spending before the season rolls around.

Think of it as giving your future self the best present: less stress and more freedom.

 

Financial Planner Nanaimo

 

 

Smart spending isn’t about cutting back on joy; it’s about making your money work for what really matters.

If you live in Vancouver or on Vancouver Island and you’re thinking about your bigger financial goals for 2026 – like saving for a home, paying down debt, or getting your budget in order – our team can help you build a plan that fits your lifestyle.

Get in touch with us today to start planning with confidence and peace of mind.

 

BC Homeowners: How to Prepare for Your Mortgage Renewal in 2026 or 2027

If your mortgage is coming up for renewal in 2026 or 2027, now’s the time to start preparing. Thousands of homeowners across Nanaimo and Vancouver Island will be renewing in the next couple of years – and with rates, budgets, and life circumstances always changing, a little preparation can make a big difference.

Here are four smart steps to help you get ready for your renewal and make the most of your options.

 

Mortgage Broker Nanaimo

 

1. Know Your Options Early

Don’t wait until your renewal notice arrives. If your income has changed, or if you’ve built up equity, your options may look very different than they did five years ago. Maybe you’re thinking about refinancing to fund renovations or consolidate debt, or you’d like to explore different lenders to find a better fit.

By starting early, you can shop around, compare products, and avoid being locked into a less competitive offer from your current lender.

 

Best mortgage renewal rates BC

 

2. Review Your Budget and Future Plans

Before you renew, take a close look at your current financial picture.
 Ask yourself:

  • Has my income or employment changed?

  • Do I have large expenses coming up (home renovations, education, etc.)?

  • Do I want to pay off my mortgage faster or lower my monthly payments?

Knowing your goals helps your broker tailor your mortgage to your next stage of life – not just renew it automatically.

 

Mortgage Broker Nanaimo

 

3. Use a Mortgage Broker, Not Just Your Bank

Why is it smarter to use a mortgage broker? While your bank might offer you a renewal letter and call it a day, a mortgage broker works for you – not the lender. A broker can compare rates and terms across multiple lenders, negotiate on your behalf, and find solutions that fit your budget and goals.

At Mid Island Mortgage, we work with a wide range of lenders across BC, so you get options, not limits.

4. Take Advantage of Rate Holds

Did you know you can secure a rate hold up to 120 days before renewal? If rates go up before your renewal date, you’ll be protected – and if they go down, you’ll still get the lower rate. That’s why looking early is better. It gives you time to make informed decisions and avoid surprises.

Get Ahead of Your Renewal

If your BC mortgage renews in 2026 or 2027, it’s not too early to start planning. Getting ahead now means more flexibility, less stress, and the best possible rate when the time comes.

Reach out to Mid Island Mortgage today to discuss your renewal options. We’re proud to serve homeowners in Nanaimo and across Vancouver Island, helping you renew with confidence and clarity.


Economic Chaos or Opportunity?

Economic Chaos or Opportunity? History Repeats Itself — Which Path Do We Choose?

“A smooth sea never made a skilled sailor.” – Franklin D. Roosevelt

We’ve seen this before. Markets rise and fall. Rates soar, then crash. Governments overspend, consumers overborrow, inflation bites — and then, somehow, we bounce back stronger.

Right now, the economy feels like a boat tossed on unpredictable seas. Between higher interest rates, stubborn inflation, and growing uncertainty, it’s easy to feel adrift. But the truth? We’ve been here before. And we’ve come out ahead — every time, economic Chaos or Opportunity?

The Optimist’s View: Set Your Sails — The Wind Will Change

Let’s talk about what we’re seeing — and why it’s not all doom and gloom.

Interest Rates: They’ve Peaked Before, and Then Dropped

  • In 2008, the Bank of Canada cut rates by 2.5% in one year.

  • In 2020? A 1.5% drop in less than 12 months.

  • From May 2024 to June 2025: another 2.25% drop already underway. Pattern? Rates rise fast, then fall fast. Always have. History suggests we’re halfway through this rate cycle.

Real Estate: Prices Are Holding, and Equity Is Plentiful

  • Vancouver Island’s home prices are only 1.7% below 2022’s peak.

  • Anyone who bought in 2020? They’ve gained nearly 60% in home value.

  • Plenty of equity means refinance opportunities are still alive, especially after the first rate cut in June 2024.

For buyers who missed the 2021–2022 boom: your time might just be now.

Employment & Growth: We’ve Bounced Back Before

  • Yes, unemployment is up slightly.

  • Yes, consumers are cautious.

  • But Canadian inflation is back near target (1.7%) and wages are still rising.

In past recessions — like in the early 1980s, the 2008 financial crisis, or COVID’s 2020 chaos — we saw stronger growth emerge after periods of belt-tightening.

Tariffs, Debt & Deficits? Been There, Done That

In the 1930s, the Smoot-Hawley Tariff Act sparked a global downturn. Today, tariffs are still making noise, but we’re also:

  • Far more globally integrated

  • Faster to respond with policy

  • Quicker to innovate our way through disruption

And yes — even Warren Buffett said Trump’s tariffs are “a tax on goods.” But as with all taxes, we adapt.

The Other Side: What Happens if the Elephant Sneezes?

But let’s not sugarcoat it. When the U.S. sneezes, Canada doesn’t just catch a cold. Sometimes we get pneumonia.

Signs of Trouble:

  • U.S. job losses and jobless claims rising again

  • Consumer sentiment lowest in 12 years

  • Deficits soaring: $1.83 trillion, and counting

  • Tariff wars and political unrest mounting

If the U.S. economy staggers into full-blown stagflation — high inflation + low growth — it won’t just be a sneeze. It’ll be a stampede.

What That Could Mean for Us:

  • Canadian exports fall (we sell 75% to the U.S.)

  • Our bond yields rise if U.S. debt causes panic

  • Fixed mortgage rates could stay high even if BoC cuts

  • Investor confidence erodes if U.S. markets spiral

So, What Do We Do?

The “Set Your Sails” Strategy

  • Refinance if you can. Use your home equity. Rates are falling — timing matters.

  • Buy smart. Home prices have corrected slightly. With long-term amortizations, monthly payments are within reach again.

  • Stay diversified. Markets will rebound. Real estate, balanced investments, and steady income matter more than chasing hot trends.

The “Elephant Sneezes” Contingency

  • Build emergency savings.

  • Lock in fixed rates if you’re unsure about the future.

  • Don’t overextend on credit. U.S. bankruptcies and credit write-offs are flashing warning signs.

Final Thought: History Doesn’t Repeat — But It Rhymes

Every cycle brings fear — and eventually, recovery.

The 1980s. The Dot-Com bust. The 2008 collapse. COVID. Now 2025.

We’ve seen the storm clouds before. What sets winners apart is not fear or panic — it’s preparation, patience, and perspective.

So whether you see the wind shifting in your favor or hear the elephant sneeze in the distance, know this:

The tide always turns. The question is: Will you be ready to sail when it does?

Blog Posts
Insured Mortgage Changes

BC Tenancy and First Time Buyers

Zoning Changes: City of Nanaimo Bill 44 Response

Maximizing Income vrs Using Business Write Offs

Mortgage News
BOC Cut = lower interest costs

CMLS Aveo 40 Year Mortgage

Bank of Canada Forecasts

What Rate Cuts Mean to Borrowers

 

CMHC’s Eco Improvement Program

CMHC’s Eco Improvement Program

CMHC’s Eco Improvement Program provides financial incentives to encourage the construction or renovation of energy-efficient homes. The Eco Program plays a pivotal role in Canada’s efforts to meet climate goals. CMHC’s Eco Program has an updated and expanded list of energy efficient certifications. Building codes are progressing toward net-zero ready standards and CMHC’s Eco Program is a Step Toward Sustainable Housing.

The initiative also promotes eco-friendly building materials, solar energy installations, and smart technology. Which help to reduce a home’s overall environmental footprint.

This means you could be eligible for a 25% refund on CMHC Insurance Premium. For some perspective; on a purchase price of $850,000 (must be below $1,500,000), with a minimum down payment of $60,000 the CMHC insurance premium is $30,600. Clients who buy a qualifying property, are eligible for a refund of up to $7900. CMHC’s Eco Program a step toward Sustainable Housing.

CMHC’s Eco Improvement Program Climate Change: A Growing Responsibility

The real estate industry is becoming increasingly aware of its environmental impact. New construction methods, energy-efficient home designs, and a greater focus on sustainability are all part of the movement to address climate change. Here are some key facts:

The Building Environment is a Major Contributor to Carbon Emissions: According to the World Green Building Council, buildings account for 39% of global carbon emissions, with energy use being the largest contributing factor.

Energy-Efficient Homes are More Attractive to Buyers: As consumers become more environmentally conscious, homes with sustainable features—such as solar panels, high-efficiency heating systems, and well-insulated walls—are growing in demand. Energy-efficient homes can sell for up to 7% more than their less-efficient counterparts, according NAR (National Association of Realtors).

Government Incentives are Growing: Programs like CMHC’s Eco Program are just one example of how governments are encouraging the real estate industry to reduce its carbon footprint. Financial incentives, rebates, and grants are available to homeowners and builders to promote energy efficiency and sustainable development.

To be Eligible:

A homeowner with CMHC Insured financing
Allocate a minimum $20,000 for energy-efficient improvements that fall within any of these 3 categories
Building Envelope (insulation, windows, doors, roof, attic, air tightness & foundation).
Mechanical systems (HVAC- Heating, Ventilation and Air Conditioning, heat pump systems).
Renewable energy systems (solar, wind, geothermal).
CMHC has made the program user friendly and beneficial for the homeowner, putting money back in their pocket is always a positive.

How do I get my Refund?:

Up to two years after the mortgage close date to submit the rebate request along with supporting documentation directly through CMHC’s website through their Eco Program and submit the application with supporting documentation. The funds can be used for any purpose, they do not have to be applied to the mortgage. The documents are good for up to five years. If the house sells the new buyer can also apply for the CMHC refund. See link to the application below.

https://www.cmhc-schl.gc.ca/en/professionals/project-funding-and-mortgage-financing/funding-programs/all-funding-programs/canada-greener-homes

Conclusion:

It’s clear that sustainability is becoming an increasingly important factor in the real estate industry. Thanks to programs like CMHC’s Eco Program, homeowners can take meaningful steps toward reducing their carbon footprint, lowering their energy costs, and contributing to the fight against climate change. The future of housing is green, and with the right incentives and awareness, the industry can lead the way in creating a more sustainable world.

Industries are looking for innovative ways to reduce their carbon footprints—and Real Estate is no exception. When it comes to homeownership, people face the choice between buying a new home or an existing one. Both options come with their own benefits. One key element shaping the future of both new and existing homes is Canada’s commitment to fighting climate change, particularly through initiatives like the CMHC’s Eco Program.

Have questions? Contact Kevin Decker, Jason Barudin, Blaire Bourcier or Tyler Moretti at Mid Island Mortgage & Savings LTD. 250-753-2242

Locally owned and operated since 1985.
“The name friends recommend”

Blog Posts
Insured Mortgage Changes

BC Tenancy and First Time Buyers

Zoning Changes: City of Nanaimo Bill 44 Response

Maximizing Income vrs Using Business Write Offs

Mortgage News
BOC Cut = lower interest costs

CMLS Aveo 40 Year Mortgage

Bank of Canada Forecasts

What Rate Cuts Mean to Borrowers

 

Before you shop, read this

Mid-Island Mortgage & Savings Ltd. & the Christmas Angels…

Why Budget?

Everyone knows, the cost of living has increased.  Going to the grocery store, the gas pump, or a trip or to the movies all costs more. While there isn’t much that can be done about that in the short term, what is in everyone’s control?  Budgeting.  Work with what you have to help make your finances align with your goals.  You do not have to break the bank this Christmas.  Read through some of our budget tips on how to live within your means. 

Why is it important to set a budget? Spending can get out of control to the point where you may not even know where your money is going.  You may not have any savings plan in place.  Do you want to start saving for a down payment on a house, or to complete some renovations?  Maybe you’re noticing your credit card bills getting out of hand.  The Christmas season puts added pressure on bank accounts, but it doesn’t have to.  Now is the time to pay more attention to your bank account and spending habits.

By creating a budget you can save money, pay down debts, reduce your stress, have more control and have money to do the things that are truly important to you.  Who doesn’t want to live within their means?  

Budget Tips:

Create a Budget

The sooner you create a budget the sooner you can start improving your finances.  Look at your net monthly income, account for expenses are mandatory, and identify any leaks where money seems to be slipping away.  

Free Monthly Budget Tool 

Christmas spending limit

Do not go overboard with gift buying this year.  Get together with family to change how you do things, have a draw for family or friends so you only have to buy for one person.  Rather than an expensive gift exchange, make homemade gifts or do a whacky $10 gift exchange.  Don’t give into pressures of the season, it’s more important to be true to your values than to get the biggest best gift.  Remember what’s truly important to you when it comes to the holidays and focus on that.

Multiple Accounts

Have multiple bank accounts-ensuring that you have a designated spending account will act as your allowance for any discretionary items.  Allocating another account where payments come out on a regular basis means you can set it and forget it. Once you’ve determined how much is going out of that account each month, you know how much to put in and subsequently you can alleviate stress.  It goes without saying, one of these accounts needs to be for Christmas if you intend to spend money around the holidays.

Automatic Transfers

Set an amount that will transfer to your savings each payday.  This can be as low as $25 to get you started and in the habit of saving.  If you have a goal you are saving towards, work backwards. Figure out when you need the money, divide it by how many pay cheques you have until then, and set up your transfer for that amount.  Then when that trip to Mexico comes up, or your hot water tank goes, you’ll have the funds on hand. This will once again reduce stress. 

Emergency Savings

It’s said to have at least 3-6 months worth of expenses in a savings account. For those who aren’t already savers by nature, that can be a daunting number.  Especially when the cost of living has risen so significantly, and ‘extra’ money may seem like a pipe dream.  Start by saving $500 to $1000 as quickly as you can. This can sit in a savings account that is accessible, and can assist in a true emergency should it arise. This could help reduce anxiety if something comes up, and mean you won’t have to rely on credit as heavily.

Allowance 

Give yourself an allowance-really!  Once you have all your monthly expenses set, you know what you’ll be able to put into savings. Provide yourself an amount that can be used for your discretionary spending, could be going to the movies, dinner’s out, or grabbing a fancy coffee.  Don’t make your budget so strict that there isn’t any fun.

Getting Help

Creating a budget is a really great starting point– but getting the help of a professional is a good idea.  A mortgage professional can review your mortgage and other expenses to see if they can help you save money.  Don’t have a mortgage? They can also help get you on the path to home ownership by helping to determine what steps you need to take.    

 

Free Monthly Budget Tool

https://docs.google.com/spreadsheets/d/1l2NNg1PHKJwUROjhObANsiML09u8ZUUpDBHWA8FpK3c/edit#gid=0 

 

Subprime vs Traditional Lending

 

Coming from a traditional lending background, I’ve often thought of mortgage lending as a puzzle. In order to help the client, every single piece is necessary to get them what they need.  Credit has to be solid, the income both consistent and sufficient, the security (house) had to be in a good location in a decent condition.  All this is required. Without every piece in place, the puzzle just wont work!  The thing is–people’s lives can be complicated, messy even. Puzzle pieces go missing, and some don’t QUITE fit.  

Traditional Lending

Lets explain; Banks, Credit Union’s, and Monoline Lenders (companies regulated by the bank act who offer single products, in this case mortgages) all have to adhere to specific rules set by the Government.  Within those rules, the companies themselves can work with their board, risk management and shareholders to ensure that their best practices are within those rules.  They may decide to assume more risk in one area but less in another. Offering products or programs that target specific audiences. Acting within the letter of the law and their internal policies and practices.  For the most part, doing the same puzzle, with the same pieces.  

Subprime

Subprime, or “B” Lenders, do not have to adhere to the same rules as big banks.  Privately owned, operated and regulated they offer their own unique pieces to the puzzle.  These lenders offer assistance to borrowers who aren’t a fit for the major lenders, so credit issues, self-employment or lack of sufficient income fits for them.  They have more flexibility in how they lend and who they lend to. 

Of course, guidelines are still in place, they merely have more of a landing pad for the “unbankable”.  Anytime a lender is taking on higher risk mortgages, there is a premium for that, and with subprime lenders it translates to higher interest rates than other lenders, and sometimes lender fees.  It would be easy for a person to sit back and form opinions based on the idea that they are charging what they are. Some might say that the people seeking money from these companies “shouldn’t even be borrowing”.

Self Employed

For our self-employed clients, the general rule of thumb is that lenders want to see the last two year’s income tax returns (T1 Generals).  For a self-employed individual, this may not be the most current and accurate version of their finances.  Subprime lenders offer Business for Self programs such as stated income that require the last 6 months of business bank statements to support the cash flowing into the company.

Credit Issues

If you go bankrupt or file a consumer proposal you’ll generally be waiting 2 years from your date of discharge in order to be a candidate for a mortgage at a bank or Credit Union.  With subprime lenders, they consider you right away.  Their minimum credit requirements are significantly lower.  Many people may think that once their mortgage is placed with a Subprime lender that they’re going to be with them forever. This is not true.  Often clients will work with their Mortgage Broker to make a plan to make their way back to an A lender.  This could mean a variety of things. A hyper focus on paying bills on time, to earning additional income.  Whatever it may be, you won’t be alone, our Brokers will work with you to set a plan and will continue to check in to help keep you on track.

Stigma

There tends to be a real stigma out there about the Subprime lending world. In a situation where you may lose the house because of lack of income, an illness, a bad relationship or business venture that left you in a tough spot–There are options for you.  Of course the ideal lending situation is to be able to have a mortgage through a major bank, or monoline company. The interest rates will be less and there will be less fees.  No one is disputing that. 

However, in my decade and a half in the finance world to confidently say that there are many of us who “do not make the mark” set by banks.  I feel fortunate to be able to offer people solutions that fit their situation, to meet them where they are.  In many cases the solutions will help them maintain or improve their housing situation, and help their financial situation.

Being a mortgage underwriter at a traditional financial institution for many years, my experience with lending was limited to our own products and services. Helping people to have access to the Subprime lenders gives me the ability to help people work with what they have.  Putting their puzzles together in a way that works for them! 

I am grateful and appreciative of the opportunity to offer mortgage and financing solutions for our clients.  Interested in learning more, or have questions about your own ability to qualify for a mortgage please call or email us.  If you’re buying, renewing, refinancing we would be more than happy to help work with you to figure out your options.

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