Mortgages on Fire

Tracy Head • June 15, 2023

I sat down to write my column and there were two themes from the last few weeks that jumped out at

me. Mortgages on fire is a bit tongue in cheek. The two things that have been a theme in my conversations lately are how the fires throughout the province are affecting both the housing market and the purchase process, and how pre-build purchase files are feeling a bit like we need a whole team of firefighters to bring them across the finish line.


Purchasing a pre-build unit can be both lucrative and very stressful. When I say pre-build, I refer to

buying a home from a developer that has not yet been built. You choose your floor plan and color scheme, make a deposit to the developer, and wait for the project to be built.


I have seen pre-builds with completion dates ranging as far out as three years down the road. The

lucrative part I referred to is that (as a general rule) real estate increases in value over time. If you buy a unit now, it may be worth considerably more by the time the project is finished and you take

possession.


In the olden days (say two or three years ago) the time to completion wasn’t a big issue. Interest rates

were lower and people qualified for more borrowing power than they do today. Some people invest in a pre-build intending to sell it closer to the time the project is complete. What they are doing is selling their contract to a new purchaser. This is called assigning the contract, or if you are the purchaser you are buying an assignment of the original contract for a higher price than the original purchase paid based on current market value of the home.


Over the last few months I’ve seen clients in tough spots as their home is nearing completion and they

no longer qualify for financing with traditional lenders. After years of dreaming about their new home clients are suddenly facing much higher payments than they planned for when they initially signed their purchase agreement. In some cases they have had to come up with additional down payment in order to complete their purchase.


On the other end of the spectrum I’ve worked with several clients who have faced delay after delay of

the completion of their new build. During the height of the pandemic this was attributed to supply chain issues and challenges finding trades to actually do the build. Over the last few months I’ve seen stories on the news and seen a few cases of developers who are facing financial challenges, which then drags out the completion date even further.


If you are considering purchasing a pre-build, I cannot stress enough the importance of doing your due diligence. Research the developer. Does the developer have a strong reputation for building quality homes and completing them on time?


More importantly, do your homework with respect to your financing. Don’t purchase something at the

top of what you qualify for anticipating that everything will be status quo two or three years from now.

Shop at a lower purchase price and save as much for your down payment as possible between now and closing.


If you are buying a pre-build, please make sure you have your ducks in a row and have a backup plan for your financing … just in case.


Back to the other part of mortgages on fire. With such an early start to the fire season this year, I expect we are in for a challenging summer.


If you are purchasing a home, one of the conditions you have to satisfy for your lender is that your home is insurable and that you have adequate insurance in place.


If a fire flares up close to the home you are purchasing, you may have a difficult if not impossible time

trying to coordinate home insurance. As a rule, insurers require that the home you are buying is a

certain radius or distance from an active fire in order to provide an insurance policy.


In order to protect home buyers that are not able to finalize their home purchase due to an active fire,

realtors ensure that there is a force majeure clause in the purchase contract.


According to google, force majeure is a contractual clause intended to protect the parties from events

outside normal business risk. The clause may be used to manage the risk of unforeseeable future events that could impact a party's ability to complete its contractual obligations.


I’m dealing with this right now with clients that are buying in Chetwynd (not far from Tumbler Ridge).

The first thing I checked was that their contract included the force majeure clause.


Regardless of the time of year you are purchasing this clause is one you should look for in your purchase agreement.


As a reminder, if you haven’t already claimed your Home Owner’s Grant, take a moment to do that. It

takes less than five minutes to complete the online form.

Tracy Head

Mortgage Broker

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Home Inspections

By Tracy Head • April 16, 2026
Why Skipping the Home Inspection Could Be the Most Expensive Shortcut You Ever Take By the time buyers reach the home purchase stage, they’ve often run an emotional marathon. You’ve found “the one,” navigated offers, and maybe even competed in a multiple-offer situation. At that point, it can feel tempting - almost logical - to waive the home inspection to strengthen your offer. As a mortgage broker who has seen the full lifecycle of homeownership—from eager purchase to unexpected financial strain - I can tell you this: skipping a home inspection is one of the riskiest decisions a buyer can make. A home inspection isn’t just a formality. It’s your one real opportunity to understand what you’re buying beyond the paint colour and staging. The Hidden Stories Behind the Walls Most homes look great on the surface. Fresh paint, modern fixtures, and carefully placed furniture can disguise a long list of underlying issues. A qualified home inspector, however, sees what most of us don’t. Some of the most common—and costly—deficiencies include: Roofing problems : Missing shingles, poor ventilation, or nearing end-of-life materials. A new roof can easily cost $10,000–$25,000. Foundation concerns : Small cracks may seem harmless, but they can indicate structural movement or water intrusion. Outdated electrical systems : Knob-and-tube wiring or aluminum wiring can present both safety hazards and insurance challenges. Plumbing issues : Poly-B piping, slow leaks, or poor drainage can lead to significant water damage over time. Furnace and HVAC wear : A furnace on its last legs might work fine during a showing—but fail in the middle of January. Attic insulation and ventilation : Poor airflow can lead to mold growth or ice damming—issues many buyers never think to check. And then there are the less obvious findings: Improperly installed renovations (that “beautiful” basement suite may not meet code) Grading issues around the home leading to water pooling near the foundation Bathroom fans venting into the attic instead of outside (a mold recipe) Decks or railings that aren’t structurally sound These aren’t just inconveniences—they’re financial commitments waiting to happen. The Domino Effect of Skipping the Inspection What many buyers don’t realize is how quickly these issues can snowball. A small leak becomes mold.  An aging furnace becomes an emergency replacement. A minor foundation crack becomes a major repair. And unlike cosmetic upgrades, these aren’t optional expenses. They demand attention—and often, immediate cash. From a mortgage perspective, this can put real strain on homeowners. I’ve worked with clients who stretched to purchase their home, only to face unexpected repair bills within months. It’s not just stressful - it can impact your ability to manage your mortgage comfortably. Negotiation Power You Don’t Want to Give Up A home inspection isn’t just about identifying problems - it’s a powerful negotiation tool. If issues are discovered, buyers can: Request repairs Negotiate a price reduction Or, in some cases, walk away entirely Without an inspection, you lose that leverage. You’re agreeing to purchase the home “as is” - whether you realize it or not. Peace of Mind Is Worth Something Even in cases where the inspection comes back clean, there’s real value in knowing the condition of your home. You move in with confidence, not crossed fingers. And if issues are identified but manageable, you can plan ahead - budgeting for repairs instead of being blindsided. A Final Thought In competitive markets, I understand the pressure to make your offer as appealing as possible. But there are smarter ways to do that than removing your safety net. A home is likely the largest purchase you’ll ever make. Spending a few hundred dollars on a professional inspection isn’t just wise - it’s essential. Because the truth is, what you don’t know about a home can absolutely cost you. And in this business, I’ve seen that lesson learned the hard way more times than I’d like.

Navigating Mortgage Renewals in Uncertain Times

By Tracy Head • April 2, 2026
If you’re one of the many Canadians with a mortgage renewal coming up this year, you’ve likely felt a bit of unease reading the headlines. Interest rates, inflation, global tensions—it can feel like a lot. After more than two decades in this industry, I can tell you this: uncertainty is nothing new in real estate or lending. What matters most is how you respond to it. The good news? You have more control than you might think. Let’s walk through a few practical, level-headed strategies to help you approach your renewal with confidence—rather than stress. 1. Start Early—Earlier Than You Think One of the biggest mistakes I see homeowners make is waiting for their lender’s renewal letter to arrive. By then, you’re already on their timeline—not yours. I recommend starting the conversation at least 4–6 months before your maturity date. This gives you time to explore options, secure a rate hold if available, and avoid being rushed into a decision. 2. Don’t Just Sign the Renewal Offer It may be convenient to simply sign and send back your lender’s offer—but convenience can come at a cost. In many cases, lenders don’t present their most competitive rates in renewal letters. Think of your mortgage like any other major expense: it deserves a second look. Even a small difference in rate can translate into thousands of dollars over your next term. 3. Consider Your Risk Tolerance—Not Just the Rate In uncertain times, it’s tempting to try to “time the market.” Fixed or variable? Short term or long term? These are important questions—but they shouldn’t be driven by headlines alone. Instead, ask yourself: Do I value stability and predictable payments? Am I comfortable with some fluctuation if it means potential savings? How long do I realistically plan to stay in this home? There’s no universal “best” option—only the best fit for your comfort level and financial goals. 4. Explore Shorter Terms as a Bridge Strategy With so much unpredictability in the global landscape, some homeowners are opting for shorter-term mortgages (1–3 years) as a way to “wait and see.” This can be a smart approach if you believe rates may stabilize or improve, but it’s important to weigh this against current pricing and your tolerance for future changes. Think of it less as gambling on rates—and more as maintaining flexibility. 5. Use This Opportunity to Restructure A renewal isn’t just about accepting a new rate—it’s a chance to revisit your overall strategy. You might consider: Adjusting your amortization to improve cash flow or accelerate payoff Consolidating higher-interest debt into your mortgage Adding prepayment privileges to give yourself more flexibility This is your moment to align your mortgage with your current life—not the one you had five years ago. 6. Build a Small Buffer Into Your Budget Even if you secure a great rate, it’s wise to prepare for slightly higher payments—especially if you’re coming off a historically low rate. Creating a bit of breathing room in your monthly budget can reduce stress and give you options down the road. If rates drop, you’re ahead. If they rise, you’re prepared. 7. Lean on Professional Advice The mortgage landscape has become more complex, not less. Policies shift, lender appetites change, and new products emerge. A good mortgage broker doesn’t just shop rates—they help you interpret the landscape and make decisions that suit your long-term financial well-being. At the end of the day, uncertainty doesn’t have to mean instability. With the right preparation and a thoughtful approach, your renewal can be an opportunity—not a setback. If there’s one takeaway I’d leave you with, it’s this: stay proactive, stay informed, and don’t be afraid to ask questions. You’re not just renewing a mortgage—you’re shaping your financial future.  And that’s worth doing well.