Tag Archive for: first time home buyer

Canada’s Public Housing Policy

Canada’s New Public Housing Strategy: What It Means for Nanaimo Buyers and Homeowners

Canada has introduced a national housing plan aimed at addressing the housing shortage and improving affordability, particularly for first-time buyers. The strategy’s goal is ambitious: to double residential construction and build up to 500,000 new homes per year over the next decade. For homebuyers and owners on Vancouver Island, BC, this could mark a turning point in housing availability, affordability, and development opportunities.

Build Canada Homes (BCH)

A key element of the plan is the creation of a new federal agency, Build Canada Homes (BCH). Its role is to:

  • Act as a public developer, building affordable housing at scale using federal and public land.

  • Provide $25 billion in debt financing and $1 billion in equity financing to support the growth of Canadian modular and prefabricated housing industries.

  • Offer long-term land leases and support innovative building methods that reduce construction time, cost, and environmental impact.

BCH will function independently from the Canada Mortgage and Housing Corporation (CMHC), allowing it to focus on rapid delivery of affordable housing, while also supporting job creation in construction and skilled trades.

Supporting Policies: Public Lands and the Housing Accelerator Fund

The federal government is also unlocking hundreds of surplus federal properties through the Public Lands for Homes Plan. These lands will be repurposed for affordable housing development, often under long-term leases to keep costs down. The goal is to build 250,000 units on public land by 2031.

In addition, the Housing Accelerator Fund continues to support municipalities—like Nanaimo—that are streamlining their zoning and permitting processes to encourage more housing development. The fund is expected to help generate up to 750,000 new homes nationally over the next decade.

What This Means for Nanaimo

More housing supply could create better buying opportunities in the Nanaimo area, especially for first-time homebuyers who have struggled with rising prices and tight inventory. Prefabricated and modular home construction could become more common, reducing build times and improving affordability in local developments.

With increased federal investment in skilled trades and materials like mass timber and softwood lumber, Vancouver Island’s forestry and construction sectors may also benefit from renewed growth and employment.

Builders and developers in Nanaimo could also access low-cost financing, land leases, and BCH partnership opportunities to bring more housing to market faster—particularly mid-density and multi-unit projects that align with municipal zoning reforms.

Considerations for Buyers and Homeowners

While the policy direction is promising, actual housing starts across Canada are still well below what’s needed to meet demand. Federal and provincial coordination, along with private-sector participation, will be critical to turning plans into results.

For buyers, especially those in Nanaimo looking to enter the market, the introduction of more affordable housing could ease price pressure over time. For current homeowners, now may be an ideal time to evaluate refinancing options while interest rates stabilize and before new supply potentially affects market dynamics.

Key Takeaways for Mortgage Clients

  • First-time buyers should stay informed about new developments supported by BCH or municipal initiatives that could expand local housing options.

  • Homeowners may benefit from refinancing ahead of broader market shifts as new inventory begins to roll out.

  • Builders and investors should monitor opportunities tied to federal land leases and modular housing financing.

Conclusion

Canada’s new housing strategy is a significant step toward restoring balance in the housing market. In cities like Nanaimo, where affordability and supply have become growing concerns, this federal initiative could open doors for new buyers, expand construction capacity, and improve housing affordability over time.

As these changes take shape, mortgage professionals play a vital role in helping clients make well-timed, informed decisions—whether buying, refinancing, or investing in the local housing market.

What Rate Cuts Mean to Borrowers

CMLS Aveo 40 Year Mortgage

 

 

 

 

 

Bank of Canada Maintains Benchmark Interest Rate at 2.75%

Bank of Canada Maintains Benchmark Interest Rate at 2.75% in June 2025

Bank of Canada Maintains Benchmark Interest Rate at 2.75%, a position it has maintained since March and April of this year. This decision reflects the Bank’s cautious approach amid ongoing economic uncertainties, particularly regarding U.S. trade policy’s potential impacts on the Canadian economy.

Economic Performance and Outlook

Canada’s economy showed resilience in the first quarter, growing at a solid 2.2%. Key drivers included a boost from exports to the U.S. and inventory accumulation, while domestic demand remained relatively flat. Strong spending on machinery and equipment helped sustain business investment, even as consumer confidence dipped sharply, leading to a slowdown in consumption.

The housing market experienced a decline, mainly due to a significant drop in resale activity, and government spending was subdued. The labour market also faced challenges, with unemployment rising to 6.9%, especially in sectors heavily tied to trade. Looking ahead, the Bank anticipates a weaker second quarter, with expenditures remaining subdued as export and inventory gains diminish.

Inflation Trends

Inflation has decreased to 1.7% in April, aided by the federal consumer carbon tax, which shaved off 0.6 percentage points from the Consumer Price Index. Excluding taxes, inflation slightly exceeded expectations at 2.3%. Core inflation measures have also edged upward, signaling persistent inflationary pressures. The Bank is monitoring these indicators closely, especially as households and businesses anticipate tariff-related price increases.

Global Economic Context

Globally, economic resilience has been tested by trade tensions. U.S. demand remains solid but has been offset by higher imports, impacting GDP growth. U.S. inflation is gradually declining but remains above 2%, with tariffs influencing prices still to be felt. Meanwhile, Europe benefits from export strength, and China’s slowdown continues amid fading fiscal stimulus and higher tariffs curbing exports to the U.S.

Financial markets have largely recovered from April’s turmoil, with volatility easing but remaining sensitive to U.S. trade policy signals. Oil prices have stayed relatively stable, hovering near April levels.

The Bank’s Rationale

Given the high level of uncertainty surrounding U.S. tariffs and their effects, the Bank opted to hold interest rates steady, aiming to gather more information on trade developments and their economic impact. The Governing Council highlighted the need for caution, balancing downward pressures from a weaker economy against upward pressures from rising costs.

Looking Ahead

Uncertainty remains elevated, as negotiations between the U.S. and China continue, and additional trade actions are possible. The Bank emphasized close monitoring of key risks—including the actual impact of tariffs on exports, investment, employment, and inflation expectations.

Final Notes

The Bank’s Governing Council reaffirmed its commitment to supporting economic growth while maintaining price stability amidst global upheaval: “We are focused on ensuring that Canadians continue to have confidence in price stability… We will support economic growth while ensuring inflation remains well controlled.”

The next rate decision is scheduled for July 9, 2025. First National Financial will provide further insights following that announcement.

“While we understand the Bank of Canada’s choice to hold interest rates to combat inflation, today’s announcement comes as a disappointment to the thousands of British Columbian mortgage holders who are uncertain about their financial future.” Said Rebecca Casey, President of CMBA-BC. “Especially when affordability concerns are still on the rise, a rate cut would’ve gone a long way to ease some of the pressures facing Canadians.”

 

 

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

 

 

Updates: BC Tenancy Act & 30 Year Amortizations First Time Buyers

BC Tenancy Act Changes & 30-Year Amortizations for First-Time Buyers

Recent government policy changes have significantly impacted the real estate and mortgage landscape in British Columbia. These changes, which took effect in July and August 2024, are crucial for landlords, tenants, and home buyers to understand. The amendments to the BC Tenancy Act and the new rules for First-Time Home Buyer amortizations are particularly noteworthy. Read on to learn more about these two significant updates.

BC Tenancy Act Key Changes

Effective July 18, 2024, several important changes to the BC Tenancy Act have been implemented. Here’s what you need to know:

  1. RTB Landlords WebPortal: Landlords must now register all notices to end a tenancy on an online portal and include the reason for termination.
  2. 120-Day Notice to Tenants: The notice period for tenants to vacate a property for owner occupation has increased from 2 months to 4 months.
    • Notice starts on the first day of the rental period.
    • Example: If notice is given on July 22, tenants must vacate by December 1.
  3. Increased Compensation: Tenants will receive 2 months’ free rent, up from the previous 1 month. Additionally, if the property is not used as stated for 12 months after the tenancy ends, the landlord or buyer owes the tenant 12 months’ rent.
  4. Increased Time to Dispute: Tenants now have 30 days to dispute a notice, up from the previous 2 weeks.

Considerations for Buyers:

  • Mortgage Interest Rate Holds: Rate holds currently last 90-120 days. When buying a tenanted property, work with your mortgage broker or lender to ensure your approval will hold until completion.
  • Owner-Occupied Purchase: When buying a tenanted property that will be your principal residence, be aware that the 120-day notice will postpone your move-in date.
  • Investor Impact: Selling tenanted properties will now involve additional considerations for landlords.

For more information, visit the Tenancy Act Changes.

If you’re looking to purchase a tenanted home, consult your REALTOR® and mortgage broker.

First-Time Home Buyers: 30-Year Amortization

Starting August 1, 2024, first-time homebuyers purchasing newly constructed homes priced under $1 million can benefit from 30-year amortizations. This change applies to insured mortgages, with a minimum down payment requirement of 5% on the first $500,000 and 10% on the balance. This update aims to increase buying power for eligible purchasers.

Eligibility Criteria:

To be considered a first-time homebuyer, at least one borrower on the application must meet one of the following criteria:

  • The borrower has never purchased a home before.
  • In the last 4 years, the borrower has not occupied a home as a principal residence that they or their current spouse/common-law partner owned.
  • The borrower recently experienced the breakdown of a marriage or common-law partnership.

First-time homebuyers should connect with their mortgage professional to update their application and determine how the increased amortization impacts their pre-qualification.

For more details, visit the CRA 30-Year Mortgage for First-Time Home Buyers.

Stay Updated

As mortgage regulations continue to evolve, we remain committed to keeping you informed with the latest information. For personalized advice and to discuss your specific situation, call us today at 250-753-2242.

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