Mortgage Rule Changes

Tracy Head • November 16, 2024

Things are picking up. I have seen a significant increase in the number of purchases I am working on with clients. I’ve done an informal poll of some of my realtor and broker friends and we are all seeing the same increase in activity.

This week I attended a learning session about the recent and upcoming changes to mortgage rules. This year it has felt like changes have been rolled out so often that its hard to stay on top of new policies.

I thought it might be good to go over some of these changes as they will benefit many homeowners and homebuyers. Please note that this is a quick explanation and you may have questions or need clarification on some of what follows so please make sure you speak with your mortgage professional before moving forward with a purchase.

In the order the changes were discussed in our session, here is a high-level overview for you.

Effective August 1, 2024 first-time home buyers (FTHB) were able to purchase a newly built home using a thirty year amortization with a minimum down payment. Prior to this change the maximum amortization allowed for buyers with less than twenty percent down was twenty-five years.

Key to note here is that the definition of a FTHB for purchasing homes is based on the CRA explanation of home buyers starting out or starting over; this includes buyers who have not owned their primary residence (nor lived in a home owned by their significant other) for the last four years. It also includes buyers who are recently separated or divorced.

Also key to note is that only one of the borrowers must qualify as a FTHB for these rules to apply.

For the purposes of Land Transfer Tax in BC, even if clients are considered FTHB under mortgage rules, they will still have to pay Land Transfer Tax if they have ever owned a home anywhere in the world.

There is a small increase to the insurance premium (,2 per cent) if borrowers elect to use the thirty year amortization.

Effective December 15, 2024 the price cap for insured mortgages will be increased from $1,000,000 to $1,500,000. Clients will be able to purchase a home up to this price with a minimum down payment of five per cent of the first $500,000 and ten per cent of any balance over that and up to $1,500,000. For the full $1,500,000 the minimum down payment will now be $125,000 as compared to the previous minimum down payment of $300,000.

Trying to come up with the required twenty per cent down payment has been a barrier for many borrowers.

The changes coming into effect December 15 also include the ability for repeat buyers to new builds with a thirty year amortization.

As well, all FTHB will be eligible to qualify based on a thirty year amortization regardless of whether they are buying a newly built home or an existing home.

For these guidelines to apply mortgage applications must be submitted AFTER December 15.

The final change I’m going to touch on today rolls out effective January 15, 2025.

Existing homeowners will be able to refinance their homes up to ninety per cent of the as-improved value of their home if they are pulling equity to create a secondary suite in their home using a thirty year amortization.

What does “as-improved value” mean?

With these applications we will need to order an appraisal which shows the current value of the home as well as the value of the home once the proposed work is completed.

Current rules limit refinances to eighty per cent of the value of the home so I see this as a significant benefit for clients who are maybe newer to the housing market and can really use the income from a secondary suite.

There are of course requirements for this program including:

Either the borrower or close family member must live in one unit of the property
You can add more than one unit to the home (up to a total of four) providing zoning allows for this
Units must be completely self-contained
Financing limit cannot exceed actual costs of the work

Is your head spinning yet? Mine certainly is, trying to keep all of these changes straight.

Many lenders are still determining their own policies as to how they choose to incorporate these rule changes into the mortgages they offer. It is important to speak with a mortgage professional to see how these changes may impact your borrowing power.

As I mentioned we are already seeing a definite increase in purchase activity. It will very interesting to see if there is a flurry of activity following the implementation of the December 15 changes as well.

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Tracy Head

Mortgage Broker

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Trying to Buy a Home in a Competitive Market

By Tracy Head • January 23, 2026

Trying to Buy a Home in a Competitive Market? You’re Not Imagining Things After years as a mortgage broker, I can tell you this with confidence: buying a home in a competitive market isn’t just hard. It’s emotionally exhausting. I talk to buyers every day who feel like they’re doing everything right. They’ve saved a down payment, checked their credit, talked to a lender, and started house hunting with realistic expectations. And yet, they’re still losing out. Multiple offers. Bidding wars. Homes selling in days — or hours. It can make even the most level-headed buyer question whether homeownership is still within reach. One of the biggest challenges I see is speed . In competitive markets, hesitation can cost you the house. Buyers are often expected to make quick decisions on the largest purchase of their lives, sometimes with limited conditions and tight timelines. That’s a lot of pressure, especially for first-time buyers who are still learning the process as they go. Then there’s the financing side. In a hot market, a strong offer isn’t just about price. It’s about certainty . Sellers want to know the deal will close. That’s why buyers with solid pre-approvals, flexible closing dates, and fewer conditions tend to stand out. Unfortunately, many buyers don’t realize how important this is until they’ve already lost a few bidding wars. Another challenge is expectations versus reality . Online listings and headline prices don’t always tell the full story. I often see buyers fall in love with homes that are priced low to attract attention, only to sell well above asking. That can be discouraging, especially when it happens repeatedly. It’s not that you’re doing something wrong. It’s that the market is playing a different game. Appraisals can also throw a wrench into things. Even if you’re willing to pay more, the lender still needs the property to appraise at or near the purchase price. When prices are rising quickly, appraisals sometimes lag behind the market. That can mean buyers need to come up with extra cash or renegotiate. That’s not a conversation anyone wants after winning a bidding war. And let’s not forget the emotional toll. I’ve seen buyers go from excited to deflated more times than I can count. Losing out on a home — especially one you pictured yourself living in — hurts. Do it three or four times, and it’s easy to feel burnt out or start second-guessing your plans entirely. So what helps? Preparation. Flexibility. And a good team. Getting your financing sorted early — ideally before you start house hunting — gives you clarity and confidence. Understanding your true budget (not just the maximum you qualify for) helps you move decisively when the right home appears. Being open on location, property type, or timing can also make a big difference. Most importantly, remind yourself of this: This market is not a reflection of your worth or your effort. It’s competitive because demand is high and supply is tight. Not because you’re failing. I’ve seen many buyers feel like they’d never catch a break, only to end up in a home they love — sometimes one they hadn’t even considered at first. The path may be longer and bumpier than expected, but with the right guidance and a bit of resilience, it’s still very possible. If there’s one thing I want buyers to know, it’s this: You’re not alone. And you’re not crazy. This market is tough — but tough doesn’t mean impossible.

FTHB readiness

By Tracy Head • January 8, 2026

First-Time Home Buyers: How to Get Ready Before You Fall in Love With a House After years of working with first-time buyers, I’ve learned this: most people don’t struggle because they can’t afford a home — they struggle because they start in the wrong order. Buying your first home isn’t complicated, but it is sequential. A little preparation goes a long way toward making the process smoother, less stressful, and more affordable. Step one: know your numbers. Before talking listings, take an honest look at your income, debts, savings, and credit. Lenders don’t just look at what you earn — they look at how you manage credit. Pull your credit report early and fix any issues before they become deal-breakers. Step two: understand the full cost. Your down payment is just the start. First-time buyers should also budget for legal fees, land transfer tax, moving costs, and everyday expenses that come with homeownership. A good rule of thumb is to have an extra 1.5%–4% of the purchase price set aside. Step three: timing your mortgage pre-approval matters. Ideally, speak with a mortgage broker three to six months before you plan to buy. This gives you a realistic budget, time to improve credit if needed, and the ability to lock in a rate. A proper pre-approval isn’t just a number — it’s a strategy. Step four: build your team early. A mortgage broker, real estate agent, lawyer, and insurance advisor should all be in place before you make an offer. When they work together, surprises are minimized and decisions are clearer. Finally: stay financially boring. Once you’re pre-approved, avoid changing jobs, taking on new debt, or making big financial moves without checking first. Lenders re-check everything. Preparation doesn’t take the excitement out of buying your first home — it replaces panic with confidence. And when the right home comes along, being ready makes all the difference.