27 May

GST Break for First-Time Buyers: What It Means for Homeowners in Coquitlam, the Lower Mainland, and Beyond

General

Posted by: Kelly Bates

GST Break for First-Time Buyers: What It Means for Homeowners in Coquitlam, the Lower Mainland, and Beyond


On May 27, 2025, the federal government announced a major tax incentive aimed at first-time home buyers: a new GST rebate on newly built homes. For buyers in high-cost areas like Metro Vancouver and the Fraser Valley, this is a significant opportunity to save thousands of dollars and improve affordability.

What’s the Deal?

First-time buyers in Canada can now receive up to $50,000 in GST relief when purchasing a newly built home priced under $1 million. For homes between $1 million and $1.5 million, the rebate is gradually reduced. Homes priced at or above $1.5 million are ineligible.

This new policy could be a game-changer in areas like Coquitlam, Burnaby, Surrey, and Port Moody where many pre-construction townhomes and condos fall within this range.

Who Qualifies?

To be eligible for this GST rebate, you must:

  • Be at least 18 years old
  • Be a Canadian citizen or permanent resident
  • Not have owned (or lived in a home owned by your spouse/partner) in the last 4 calendar years
  • Use the home as your primary residence
  • Be the first person to occupy the home

What Types of Homes Are Covered?

This GST rebate applies to:

  • Newly constructed homes purchased from a builder, where the purchase agreement is signed on or after May 27, 2025
  • Owner-built homes where construction starts on or after May 27, 2025
  • New cooperative housing units under similar timelines

Note: Construction must begin before 2031 and be substantially completed by 2036.

Important Limitations

  • The rebate can only be claimed once per individual
  • If your spouse or partner has already claimed a first-time GST rebate, you cannot
  • You cannot backdate by canceling and re-signing a contract signed before May 27, 2025

Why This Matters in BC

For first-time buyers in BC, especially those targeting pre-sale opportunities or new construction homes, this rebate could free up a significant portion of your closing budget. Whether used toward your down payment, legal fees, or moving costs, it’s money that stays in your pocket.

Let’s Talk About What This Means for You

Wondering how this affects your mortgage pre-approval or down payment strategy? I’d love to walk you through it and help you take advantage of this program.

Book a Free Discovery Call

This policy is expected to deliver nearly $4 billion in tax savings over the next five years. Don’t miss your chance to benefit.

14 May

Manulife One Explained: Is This All-in-One Mortgage Right for You?

General

Posted by: Kelly Bates

If you’ve ever wished your mortgage could work smarter, not just harder, then the Manulife One program might be worth a closer look. Designed to simplify your banking and potentially help you become debt-free sooner, this unique all-in-one mortgage product combines your mortgage, chequing, savings, and even other debts into a single, flexible account.

What is Manulife One?

At its core, Manulife One is a secured line of credit attached to your home that functions like a combined mortgage and bank account. Instead of keeping your mortgage, savings, and everyday banking separate, it wraps everything into one account. This means your income deposits and savings immediately reduce your outstanding mortgage balance, and interest is only charged on the net amount you owe.

Manulife One is structured in two parts: a line of credit portion and a fixed-rate mortgage portion. The line of credit portion is where your day-to-day banking happens your income goes in, your expenses come out, and any money sitting in the account automatically reduces your interest costs. The fixed portion, on the other hand, acts like a traditional mortgage with regular payments and a locked-in interest rate. You can choose to allocate part of your mortgage into this fixed portion if you want rate stability or a more predictable repayment schedule, while the remaining balance stays in the flexible line of credit.

How It Works Day-to-Day

Manulife One functions just like your everyday chequing account: You can deposit your income, pay bills, and make purchases using debit or e-transfers. But here’s the difference: every time you deposit money, that amount instantly goes toward lowering your mortgage balance. Spend money, and the balance goes back up. Interest is calculated daily and charged monthly, so the more money you leave in the account, even temporarily, the less interest you pay.

Let’s say you owe $300,000 on your mortgage, with $100,000 in a fixed portion and $200,000 in the line of credit. When you deposit a $5,000 paycheque, it reduces the $200,000 line of credit balance to $195,000. You’ll pay less interest on the lower balance, and that $5,000 is still available to spend if needed. If you spend $4,000 that month, the balance climbs back up to $199,000, but you still saved interest on the days that $5,000 was sitting in the account.

Key Benefits

  • Interest Savings: Every dollar you keep in the account reduces your debt and interest costs.
  • Flexibility: You can access your available equity at any time for renovations, emergencies, or even to consolidate higher-interest debts.
  • Simplicity: Instead of juggling multiple accounts and payments, you manage everything from one place.
  • Faster Payoff: With consistent deposits and responsible spending, you can reduce your mortgage years faster than with a traditional setup.
  • Rate Stability (Optional): You can allocate part of your balance to a fixed-rate sub-account for predictable payments and protection from rising rates.

Things to Consider

Manulife One isn’t for everyone. It offers flexibility, but it also demands discipline. If you consistently re-borrow what you pay down, you may not make real progress on reducing your debt. And because it usually carries a higher interest rate than traditional mortgages, the savings only come if you’re actually reducing your balance.

Currently Manulife is waiving all the fees for this product. There is no fixed amortization schedule on the line of credit portion-you need to create your own plan to become debt-free. The fixed portion does provide more structure, but it’s optional and must be actively chosen.

Final Thoughts

Manulife One can be a powerful tool for homeowners who are financially disciplined and want more control over their mortgage. By putting every dollar to work the moment it hits your account, you can save on interest and simplify your finances. And with the option to secure part of your mortgage at a fixed rate, you can enjoy both flexibility and peace of mind. But like any tool, it’s most effective when used wisely.

Curious if Manulife One is the right fit for your financial goals? Let’s chat. I’d be happy to walk you through it.

 

14 May

Stay Mortgage-Ready: 10 Mistakes to Avoid Before Closing Day

Mortgage Tips

Posted by: Kelly Bates

Navigating the final stages of securing a mortgage can be both exciting and nerve-wracking. Even after receiving a mortgage approval, certain missteps can jeopardize the closing process. To ensure a smooth transition to homeownership, here are ten critical actions to avoid between your mortgage approval and the actual closing.

1. Avoid Changing or Quitting Your Job

Lenders prioritize stability. Switching jobs or altering your employment status—such as moving from full-time to part-time—can raise red flags. Even if the new position offers a higher salary, probationary periods or changes in income consistency can lead lenders to reassess or even revoke your mortgage approval.

2. Don’t Reduce Your Income

Any decrease in income can affect your debt-to-income ratio, a key metric lenders use to assess your ability to repay the loan. Maintaining consistent income ensures that your financial profile remains favorable in the eyes of the lender.

3. Refrain from Applying for New Credit

Opening new credit accounts or taking on additional debt can negatively impact your credit score and debt-to-income ratio. These changes can make you appear riskier to lenders, potentially leading to higher interest rates or loan denial.

4. Don’t Close Existing Credit Accounts

While it might seem prudent to close unused credit cards, doing so can reduce your available credit and increase your credit utilization ratio. This shift can lower your credit score, affecting your mortgage terms.

5. Avoid Co-Signing Loans

Co-signing a loan makes you legally responsible for the debt. This obligation increases your liabilities, which can alter your financial profile and potentially disqualify you from your mortgage.

6. Continue Paying All Bills Promptly

Timely bill payments are crucial. Late payments can significantly impact your credit score, which lenders monitor up until the closing date. A drop in your score can lead to unfavorable loan terms or denial.

7. Don’t Use Funds Allocated for Closing Costs

Lenders expect you to have sufficient funds to cover closing costs, typically around 1.5% of the purchase price. Using these funds for other expenses can jeopardize your ability to close the deal.

8. Avoid Making Large Purchases

Purchasing big-ticket items like furniture or appliances on credit can increase your debt load and affect your credit score. It’s advisable to postpone significant purchases until after the mortgage has closed.

9. Don’t Alter the Purchase Agreement Without Consulting Your Lender

Any changes to the purchase contract, such as price adjustments or added contingencies, can affect your mortgage approval. Always discuss potential modifications with your lender before making them official.

10. Avoid Listing Your Current Property for Sale

If your mortgage approval is contingent upon retaining your current residence, listing it for sale can complicate or nullify your loan agreement. Ensure that any decisions regarding your existing property are communicated and approved by your lender.

Final Thoughts

The period between mortgage approval and closing is critical. Maintaining financial and employment stability during this time is essential to ensure a successful home purchase. Always consult with your mortgage advisor before making significant financial decisions to avoid jeopardizing your loan approval.

If you have further questions or need personalized advice, feel free to ask!

8 Mar

First-Time Homebuyers in Canada: Overcoming The Unknown and Unlocking Your Homeownership Potential

General

Posted by: Kelly Bates

Choosing to become a First Time Home Buyer is one of the biggest financial decisions you’ll ever make. In Canada’s competitive housing market, it’s completely normal to feel overwhelmed, uncertain, or even afraid of taking that first step.

“What if I can’t afford it?”

“What if interest rates rise?”

“What if I don’t qualify for a mortgage?”

These are just a few of the fears I hear from first-time homebuyers. But here’s the truth: fear often comes from the unknown. The best way to overcome that fear is by educating yourself and getting expert guidance-starting with understanding what you can actually afford.

As a mortgage broker, I’m here to help you navigate this process with confidence. Let’s break down the biggest fears of first-time homebuyers, how to overcome them, and why sitting down with me is your best move toward home ownership.

Biggest Fears of First-Time Homebuyers (And How to Overcome Them)

1. Fear of Not Being Able to Afford a Home

Many first-time buyers assume homeownership is out of reach, but in reality, they may be more qualified than they think.

Overcome it by:

• Getting pre-approved for a mortgage so you know what your budget is BEFORE you go home hunting.

• Working with a mortgage broker to explore all available financing options

• Understanding new Government Measures enacted as of December 15, 2024 and how these changes can help lower your payment while also increasing your home buying power

• Taking advantage of first-time homebuyer incentives such as the First-Time Home Buyer Incentive, RRSP Home Buyers’ Plan, and land transfer and other tax rebates

When you know your actual home-buying power, you’ll stop guessing and start shopping with confidence.

2. High Mortgage Payments and Rising Interest Rates-The Unknown

Interest rates fluctuate, and the thought of high payments can be intimidating. But locking in the right mortgage product can protect you from unexpected financial strain

Overcome it by:

• Exploring fixed vs. variable rate mortgages based on your financial comfort level

• Learning about rate holds and how a mortgage broker can secure you a low rate

• Budgeting beyond the mortgage payment by factoring in property taxes, maintenance, and utilities

As your mortgage broker, I’ll shop around for the best rates and terms to ensure you’re comfortable with your payments

3. Rejection (What If I Don’t Qualify?)

Lenders have strict qualification criteria, and many first-time buyers fear they won’t meet them. But the reality is, with the right strategy, you can improve your mortgage approval odds.

Overcome it by:

• Understanding what lenders look for: credit score, income, employment stability, and debt levels

• Working with a broker who can match you with lenders that suit your unique financial situation

• Exploring Eco-Friendly incentives thru programs such as CMHC’s Eco Plus offer of a 25% partial premium refund for homes meeting specific energy efficient criteria

• Learning about alternative lending solutions if traditional banks aren’t an option

Mortgage approval isn’t a mystery—it’s a process. I can guide you through it and help you strengthen your application

4. Fear of Making a Bad Investment

Nobody wants to overpay for a home or buy a property that won’t appreciate in value.

Overcome it by:

• Understanding Eligibility Criteria with the recent increase in the insured mortgage cap and extended amortization options which will make it easier to qualify for a mortgage with a smaller down payment

• Getting a mortgage pre-approval so you can shop within your means.

• Working with a knowledgeable real estate agent to find a home in a strong market.

• Considering future growth, resale value, and neighborhood trends.

When you have a clear understanding of what you can afford and what makes a smart investment, you’ll feel empowered to make the right choice.

AND This is Why You Need a Mortgage Broker to Guide You

A mortgage broker isn’t just someone who gets you a mortgage. I’m here to simplify the process, educate you on your options, and help you secure the best financing solution for your first home.

Here’s what I bring to the table:

✔ Access to Multiple Lenders – I shop the market to find the best mortgage rates and terms tailored to your needs

✔ Continued Expert Guidance – I break down the home-buying process, so you fully understand your mortgage options now AND thru out the life of your mortgage

✔ Personalized Strategies – Whether you have great credit or are working on improving it, I help you qualify for the right mortgage

✔ Negotiation Power – I work for you, not the banks, ensuring you get the best deal possible

✔ A Stress-Free Experience – Buying a home should be exciting, not overwhelming. I handle the details so you can focus on finding the perfect home

Take the First Step: Let’s Talk About Your Home Buying Power

The first step to home ownership is knowing exactly where you stand. By sitting down with me for a free consultation, you’ll gain a clear understanding of:

✅ How much you can afford

✅ What mortgage options work best for you

✅ How to secure the best possible rate

✅ How to confidently move forward in your home-buying journey

Homeownership is within reach—you just need the right guidance to get there. Let’s turn your dream into a reality. Book your free consultation with me today right on my website!

4 Mar

How Important Are Rates When Shopping for a Mortgage?

General

Posted by: Kelly Bates

How Important Are Rates When Shopping for a Mortgage?

When homebuyers start the mortgage process, one of the first things they ask about is interest rates. And while rates are undoubtedly a crucial factor, they aren’t the only thing to consider when choosing a mortgage. As a mortgage broker, I help clients see the bigger picture—because the best mortgage isn’t always just about the lowest rate.

Why Mortgage Rates Matter

Let’s be clear: a lower mortgage rate can save you thousands of dollars over the life of your loan. Even a fraction of a percentage point lower can translate to significant savings in interest payments. Over a 25-year term, a small difference in rates can add up to tens of thousands of dollars.

Because of this, it’s essential to shop around for a competitive rate. However, rates alone shouldn’t determine your mortgage decision. Other factors can impact your financial situation just as much-if not more-than the interest rate itself.

The Hidden Costs Beyond Interest Rates

Many borrowers get caught up in chasing the lowest rate, but they often overlook the fine print that comes with their mortgage. Some ultra-low-rate mortgages come with restrictions that could cost you more in the long run. Here’s what to watch out for:

  1. Prepayment Penalties

Life is unpredictable-you may want to sell your home early or refinance in a few years. Some mortgages with the lowest rates come with significant prepayment penalties, meaning you could pay thousands in fees if you break your mortgage early.

  1. Fixed vs. Variable Rates

A fixed rate provides stability, while a variable rate may offer savings if market conditions are favorable. Choosing the right option depends on your risk tolerance and financial goals. A broker can help you determine which is best for you.

  1. Mortgage Features & Flexibility

Does your mortgage allow for lump sum prepayments? Can you increase your monthly payments without penalty? These features can help you pay off your mortgage faster and save on interest. A slightly higher rate with more flexibility may be a smarter financial move.

  1. Qualification Requirements

Some lenders offer incredibly low rates but have strict qualification criteria that many borrowers don’t meet. A mortgage broker can assess your financial situation and find lenders that match your needs-not just those offering the lowest rates.

  1. Overall Mortgage Strategy

A mortgage should fit your long-term financial goals. The right mortgage structure can help you manage cash flow, invest in other opportunities, or even pay off debt more efficiently. A broker looks at the full picture, not just the rate.

The Broker Advantage: More Than Just Rates

A mortgage broker does more than just find a low rate-we compare products from multiple lenders, assess your unique situation, and help you secure a mortgage that aligns with your financial goals. Our access to exclusive deals and alternative lenders means we can often find better terms than what’s advertised at banks.

The Bottom Line

While mortgage rates are important, they’re only one piece of the puzzle. Choosing the right mortgage means considering flexibility, fees, and long-term financial goals. By working with a mortgage broker, you ensure you’re getting not just a great rate, but a mortgage that truly works for you.

If you’re shopping for a mortgage and want expert advice beyond just the numbers, let’s connect. I’ll help you navigate the options and secure the best mortgage for your unique needs.