Exciting Announcement

Tracy Head • February 26, 2024

There were several announcements made recently that I am very excited about – changes that will help make it easier for people to afford to buy and afford homes.



Effective April 1, 2024 the BC Provincial Government has increased the purchase price for First Time Home Buyers (FTHB) and buyers purchasing newly built homes to qualify for the Property Transfer Tax (PPT) Exemption.


Up until then, FTHB who bought a home with a fair market value of $500,000 or less (assuming they met all of the program qualifications) were exempt from paying PPT.  PPT on a home priced at $500,000 would normally incur PPT of $8,000 so this is a considerable help for FTHB.


After April 1st, the exemption will now be granted for FTHB purchasing homes up to a fair market value of $835,000. There will be a partial exemption up to $860,000.


On a home with a purchase price of $800,000 this means a savings of $14,000 for FTHB.


This is particularly significant because this is a closing cost that cannot be added to the mortgage; it must be paid up front. Using this same example, the minimum down payment on an $800,000 home is $55,000. 


One of the biggest challenges people face is trying to save their down payment, so this increase in the exemption will be a huge help for many clients.


There are other exemptions to the PPT that have changed. People buying newly built homes, regardless of whether they are FTHB or not, can be exempt from paying the PTT. Up until April 1, 2024 the purchase price for this exemption is $750,000. Effective April 1st, this exemption will increase to $1,100,000 with a partial exemption up to $1,150,000.


The second program that is being introduced April 1, 2024 is the Secondary Suite Incentive Program. 


In a nutshell, the provincial government will provide a forgiveable loan of up to fifty per cent of the cost of renovations to add a secondary suite to an existing home, to a maximum of $40,000. 


Applications for this program will be accepted starting April 17, 2024.


For the loan to be fully forgiven there are conditions that must be met:

  • The unit must be built in the same location the homeowner lives
  • The unit must be rented out below market rates for five years


I attended a learning session with one of my favorite lenders this week about the program and they are still trying to sort out how we will be able to combine this with a purchase or a refinance to help clients get the funds they need to participate in the program.


There are many details we do not have yet, but you can find the initial information at Secondary Suite Incentive Program | BC Housing .


There are many listings my clients look at that can be easily renovated to facilitate a secondary suite so it will be interesting to see how we can use the program to help clients generate income to help cover their mortgages while at the same time creating more affordable housing options for renters.

Tracy Head

Mortgage Broker

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Conditions of Mortgage Financing

By Tracy Head • May 5, 2025
When I work with clients that say they are writing an offer on a private sale I always talk about the benefits of working with a realtor. Realtors do so much legwork that happens behind the scenes that clients aren’t even aware of. Most times it is challenging on my end when clients try to tackle the process of writing an offer on a private sale themselves. I joke and say I am going to charge them an extra fee because of the additional work it creates on our end. I don’t actually charge a fee to be clear but I am only half kidding. When you start down the road of buying a home there are many new and unfamiliar terms you may hear. Whether you are working with a realtor or not, arguably some of the most important things you need to learn about are the “subject to” conditions to include in your offer to purchase. When you write an offer to purchase a home, your realtor will offer guidance as to the conditions you include. Common conditions you will see are:  Subject to arranging suitable financing  Subject to a satisfactory home inspection  Subject to arranging home insurance  Subject to review of strata documents  Subject to the sale of your current home If you are purchasing a rural property or are in a unique situation you may also see:  Subject to a water potability test  Subject to an inspection of the septic system  Subject to the seller finding a suitable home to purchase These lists are not all-encompassing by any means. The purpose of adding conditions to your offer is to protect you in case there are any issues with the home you are looking to purchase. In previous columns I’ve written about the potential dangers of writing a subject-free offer. The high- level, quick position is that if you write a subject-free offer you’d better have cash on hand to buy the home. I have worked with several clients over the last few months that have written private offers. We do absolutely everything ahead of time to try to ensure they will be successful with their financing. These files stress clients more than you can imagine. They have to either find templates to fill out or pay a lawyer or notary to prepare the documents for them. Either way they need to quickly learn about the conditions I listed above and understand key dates involved in the buying process. The clients need to deal directly with the sellers on any issues that may arise. When you are working with a realtor they handle these issues on your behalf. A knowledgeable realtor also helps avoid issues by taking any of the personal contact and emotions out of any potential areas of conflict. Make sure you do your due diligence and have your ducks in a row as you move forward with an offer to purchase whether writing an offer with a realtor or on your own. Now that the sun has come out and the election is over I’ve seen my clients more actively shopping which is encouraging. As always, my advice is to work with a realtor that you are comfortable with and who knows your area well.

Not all lenders are created equal

By Tracy Head • April 21, 2025
Not all lenders are created equal Just as no two clients are the same, not all lenders are created equal. For the majority of clients getting the best interest rate is their primary concern. For me as a broker it is as important to find a lender that provides a smooth process from start to finish and excellent customer service once a mortgage has finalized. What do I mean by this? When new lenders pop into the mortgage market they often offer low interest rates or better compensation to encourage mortgage brokers to send files their way. Sometimes these new lenders are amazing, and sometimes not as much. Once in a while more established lenders will offer brilliant rates in order to increase the number of mortgages they have on the go. We see lenders float in and out of the competitive rate market based on how much money they have available to lend at any given time. While this can be great for clients, it can also be a nightmare. If a lender does offer rates much lower than other lenders they end up flooded with applications. They may or may not have the staff / staff with expertise to handle larger volumes and increased time pressures. If we are working on a refinance with flexible dates this isn’t necessarily a problem. If we are working on a purchase application with deadlines this can become stressful for all involved. On top of that lenders have different processes for handling the legal paperwork that goes to your lawyer’s office. Some lenders handle everything in-house and have very responsive teams to handle getting the documents to your lawyer and addressing any changes that need to be made. Other lenders hire third-party service providers to produce their documents and this adds an extra day or two to the process. As a broker I try to learn about my clients’ longer term plans and find the right fit lender-wise. I look at lenders’ policies for portability, pre-payment options, flexibility with respect to their guidelines, broker support, and equally as important client service experience after the mortgage finalizes. Does the lender have a portal? Will they allow me as a broker to help my clients or do they require clients to work with them directly for any changes? We sent applications to two newer lenders over the last month because they had fantastic rate specials available. Both files ended up being very stressful as we were down to the wire waiting for mortgage instructions to be sent to the clients’ respective lawyers. I prefer not to have to deal with last-minute stress on my files.  Rate is of course incredibly important to your long-term financial health. In my mind a smooth process before and after your purchase or refinance is also important. There are many considerations that go into choosing the right package for our clients. My recommendation one day may change the next depending on both your situation and what I am seeing behind the scenes with various lenders. I hope you had a beautiful Easter weekend!!