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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Early Renewal

By Tracy Head • August 27, 2025
Does an early renewal make sense? 2020 was a very busy year for home buying and mortgages. This means that 2025 is and has been a busy year for mortgage renewals as the majority of clients seemed to choose five year terms in 2020. I’ve had lots of conversations with my own and new clients about whether it makes sense to renew early. Each conversation is slightly different based on client needs and their individual circumstances. Most of the time I suggest that clients stay with their current lenders until their renewal dates because their current interest rates are anywhere between 1.6 per cent and 2.79 per cent. If you don’t need to make any immediate changes it makes the most financial sense to stay put until your term runs out. We can start the process of either switching or refinancing mortgages four months ahead of your renewal date and lock in a rate for you. As a generalization, when people ask about doing a straight switch (not adding any money to their mortgage) I will do a survey of what interest rates are available so they can go back to their lender to try to negotiate a great rate. Time and time again I’ve worked with clients on switches for them to cancel at the last minute as their current lender finally sharpens the pencil rather than lose the client. This is why I always try to help people negotiate with their current lender rather than put everyone through the work of having a new mortgage approved. If clients are wanting to add money to their mortgage to pay out consumer debt or pay for home renovations that changes things a bit. Some lenders are more aggressive with their refinance rates so it makes sense to make a move. Another situation has popped up this week that has had me crunching numbers for multiple clients. One of my favorite lenders came out with a quick-close rate special that is pretty hard to pass up. The fine print is that the new mortgage has to finalize within thirty days. I have been working on a refinance at renewal for clients that is set to close at the beginning of November. I took a look at how their current lender calculates the payout penalty when they are this close to renewal. It turns out they charge daily interest instead of a three-month interest penalty or interest rate differential. So I did the math. If we pay out early to take advantage of this great interest rate their payout penalty is around the $1000 mark. Over the term of the new mortgage they will save approximately $5500 in interest cost and their monthly payment will be about $85 per month less. Even after they pay out the penalty to move a bit early they will still be $4500 ahead over the term of their mortgage. This is one of the few times I’ve recommended that it makes sense to move forward ahead of the renewal date.  If you have a renewal coming up over the next few months I’d say it’s a good idea to connect with your mortgage person to look at what rates are available now and figure out whether it makes sense to consider making a move sooner rather than later. Lenders will pop up with rate specials from time to time so it is worth having your mortgage professional keep an eye open for you as your renewal date comes closer. It may just save you a significant amount of money.

Purchase Checklist

By Tracy Head • August 11, 2025
Last week was a vivid reminder of the importance of finalizing your home insurance as soon as you are within thirty days of your closing date on a home purchase. I had three clients with purchases closing on the Friday after the fire broke out in Peachland. All three had to push their closing dates back because they couldn’t get their insurance in place due to an active fire. Thinking about this led me to consider a few of the key steps involved when purchasing a home. I’ve written about this in prior columns but I feel a reminder is never a bad idea. There are a few areas of crossover between the guidance your realtor gives you and the advice you receive from your mortgage person. When your realtor writes your purchase contract there are some standard conditions that are added to the agreement. You will generally see the following: Subject to the purchaser obtaining satisfactory mortgage financing Subject to the purchaser having a home inspection conducted Subject to the purchaser arranging home insurance Subject to review of strata documents if applicable Subject to the sale of the purchasers’ current home if applicable The financing end is obviously our responsibility. I do double-check with my clients that they have taken care of the other conditions. Most realtors are great at offering support to their clients with respect to addressing the relevant conditions. In some cases I feel like realtors tell clients the steps they need to take but my guess is that the whole process can feel or become overwhelming. Before I give my clients the ok to remove their financing subject I confirm that they have taken care of the home insurance as this is one piece they sometimes miss.  If you are going through the process of purchasing a home my suggestion is keep a notebook (aging myself by suggesting a paper version) or a list on your phone to keep track of your must-do tasks as you go through the process. I have a checklist that I’m happy to share if you would like a copy.