Becoming an adult in Canada is confusing.
In B.C., you’re legally an adult at 19 (or as the adults say Age of Majority).
In Saskatchewan and Alberta, you hit adulthood at 18.
In all three provinces, though, you still have no clue how to do your taxes, assemble IKEA furniture, or understand why your parents keep talking about mortgage rates at dinner.

But there’s one part of “adulting” we absolutely should be teaching our soon to be grownups the minute they qualify:
Opening a First Home Savings Account (FHSA).

And here’s the secret parents know (or should):
If your kid opens this account early, even with literally one dollar, their future down payment can start growing today.

Let’s break this down in a friendly, slightly funny, and very real way.

What Is the FHSA? (A.K.A. The Account Your Future Home Will Thank You For)

Think of the FHSA as the government’s way of saying:

“Hey, buying your first home is tough. Here’s a giant tax-advantaged piggy bank to help.”

It’s a special savings account you can open once you reach the age of majority in your province (B.C. = 19, SK/AB = 18).
You get:

• Tax deductions like an RRSP

• Tax-free withdrawals like a TFSA

• Up to $40,000 in contribution room

• 15 years to use the money for your first home

It is, without exaggeration, the best tool young Canadians have for homeownership.

Why Parents Should “Drag Their Kids by the Hoodie (Bunny Hug in Sk)” to Open One Immediately

The FHSA gives you $8,000 of deposit room per year, up to a lifetime maximum of $40,000.

BUT, and here’s the part most people miss, your contribution room doesn’t start until the account is actually opened.

That means:

• If your 18 or 19 year old opens their FHSA today, they start earning $8,000 of room for this year.

• If they wait five years…they lose five years of room.

Parents, this is your moment.
You held their hands when they crossed the street.
You held their hands when they learned to skate.
Now, figuratively hold their hand as they open an FHSA.

Even if they open it with a single, lonely toonie they’re in the game.

Tax Benefits (a.k.a. Free Money Without Needing to Win a Roll Up the Rim)

1. Contributions reduce taxable income

Just like an RRSP, every dollar they contribute can be claimed as a tax deduction.

Teens with part-time jobs?
University students working summers?
Young adults in entry-level roles?

This can be a huge boost to their tax refund.

2. Growth inside the FHSA is tax free

No tax on interest.
No tax on dividends.
No tax on capital gains.

More money stays in the account to help build the future down payment.

**3. Withdrawals for the home purchase are completely tax free

This is the magic.
They don’t pay a cent in tax when they take the money out to buy their first home.

That’s like RRSP + TFSA superpowers combined.

How Long Must the Money Be in the Account Before They Can Use It?

Good news:

There is no minimum holding period for the money to qualify for the tax free first home withdrawal.

As long as:

• They’re a first time homebuyer

• The home is in Canada

• They have a written agreement to buy/build within the required window

…they’re good to go.

FHSA vs TFSA vs RRSP (Explained Like You’re 19 and Only Half Listening)

• FHSA: Best if you know you want to buy a home. Huge tax savings. Biggest long-term benefit.

• TFSA: Great all-purpose savings. No deduction up front, but tax-free forever.

• RRSP: Good for retirement and also helps with home buying through the HBP (but you need to pay that back later).

Pro tip for parents & grandparents:

If you want to gift your kid money for their future home, gifting it into their FHSA maximizes the tax advantage.

What Happens If They Don’t Buy a Home?

They can roll the money tax free into their RRSP.
No penalty.
No drama.
No “government clawback.”

Just a smooth transition into retirement savings.

It’s literally win win.

Final Thoughts for Parents and Young Adults

If you’re a young Canadian:
Open your FHSA the minute you turn 18 or 19, depending on your province. Even if you can only put spare change in it, you are getting a head start your future self will be grateful for.

If you’re a parent:
Get involved. Ask questions. Help them open it. Celebrate it like passing their road test minus the insurance bill.

Homeownership is hard, no doubt.
But a smart start today makes a massive difference for tomorrow.

Bank of Canada Rate Cut: What It Means for the Real-Estate Market

What happened and why

On October 29, 2025, the Bank of Canada lowered its target overnight rate by 25 basis points, bringing it to 2.25 %. In its press release, the Bank cited that the Canadian economy is facing weak growth, with exports and business investment especially affected by U.S. trade tensions, and the labour market showing signs of softness. At the same time, inflation is still hovering near target, but underlying price pressures (“core inflation”) remain stubborn. The Bank indicated that with growth weak and inflation roughly under control, the current policy rate is “about the right level” for now signalling this could be the last cut unless conditions worsen.

In short: the Bank is easing to support growth, but is also saying “we’re probably at the bottom of this cycle unless we see a real deterioration.”

Implications for the Realty Market

Here’s how that cut plays out across three key situations: purchasing, refinancing, and renewing.

Purchasing

• A lower policy rate typically leads to reductions (or at least downward pressure) on variable mortgage rates. For first-time or repeat home-buyers, that’s good news: carrying costs may come down.

• However: fixed mortgage rates are less directly tied to the policy rate and more tied to bond yields and longer-term inflation expectations. Because the Bank signalled it might pause further cuts, long-term rates may not fall dramatically. So buyers shouldn’t assume huge changes as it’s modest improvement, not a free-for-all.

• Advice: If you’re a buyer in BC, consider locking in sooner rather than later if you find a property you want. The cut gives wiggle room, but it may not last indefinitely, and a pause may lead to rates staying flat or even creeping up if inflation surprises. Also reassess your affordability buffer: use the newly slightly more favourable cost environment to your advantage and show clients how their payment sensitivity improves.

Refinancing

• If a homeowner has a variable rate mortgage (or a variable portion) the cut may translate into a lower interest cost, freeing up cash flow. That can make refinancing more attractive.

• For fixed rate borrowers, the benefit depends on how bond yields respond. If yields drop, you may be able to refinance into a lower fixed rate term; if not, the benefit is less.

• Advice: Encourage clients to check with their broker/lender to see how their specific product will reflect the rate cut. For example, what will the new payment be, what are penalty and break even timelines, etc. It’s a moment to revisit refinancing opportunity especially if clients have improved equity or their personal situation has changed (income, credit, goals).

Renewing

• For clients whose mortgages are coming up for renewal (especially variable or hybrid products), this rate cut is a reminder to reach out to your broker so he can shop around for you. The cut may improve market offers and create incentive to negotiate.

• Caveat: since the Bank flagged the rate is likely “about right” and signalled fewer cuts ahead, clients renewing may not enjoy large further reductions. The window is moderate.

• Advice: Use this as a prompt to have clients reach out now rather than later. Compare fixed vs variable (or term vs longer term) in light of both current savings and future rate risk. Especially in BC where housing costs are high, even modest savings on renewal can improve cash flow or allow clients to allocate more to principal.

Why the Bank Did What It Did

• The core driver: slowing economic growth and rising uncertainty especially from trade disruptions. The Bank flagged weak sectors (autos, steel, lumber) due to U.S. tariffs.

• Labour market softening: the unemployment rate is around 7.1 % in September, with wage growth decelerating.

• Inflation remains manageable: while core measures are slightly elevated (around ~2½ %), headline inflation is ~2.4 % and the Bank expects inflation to trend near its 2 % target.

• The Bank emphasized that monetary policy alone cannot reverse “structural damage” from trade shifts meaning it must support the economy but has limited capacity to boost growth dramatically.

• By cutting now, the Bank is giving “insurance” protecting against downside risks but also signalling it doesn’t expect to have to cut further unless things worsen. That’s why its guidance is more cautious, which markets interpreted as “this might be the last cut for now”.

Outlook: What Comes Next?

• With the overnight rate at 2.25% and the Bank stating that is “about the right level” if forecasts hold, further rate cuts are not guaranteed although the door remains open, but conditions would need to worsen significantly.

• If inflation picks up or the economy unexpectedly heats up, the Bank could raise rates, though that is not the base case.

• For the real-estate market: expect moderate rate activity. Variable rates may edge downward (helping borrowers) but fixed rates may remain relatively stable unless bond yields drop.

• For the BC market specifically: affordability remains a major factor. Even with a small rate improvement, higher home prices, tighter qualifying criteria, and provincial/municipal taxes/regulations mean buyers still face headwinds.

• For renewal/refinancing: clients should act now while the process is fresh. Waiting may risk missing out on savings, especially if lenders adjust offers in response to market movements.

• For buyers: it reinforces the value of pre-approval, budgeting for rate shock (if rates rise later), and focusing on fundamentals (property suitability, location, resale, long-term affordability) rather than purely chasing rate alone.

Key Takeaways for Your Clients

• This rate cut is good news — it lowers cost pressure modestly and improves affordability slightly.

• It doesn’t mean unrestricted support: the Bank is cautious and further cuts are not a lock.

• For buyers: now is a favourable window; but still assess affordability, buffer for rate increases, and act with strategy.

• For refinancers and renewers: use this moment to review options, compare offers, and execute if it makes sense.

• For all stakeholders: work together (realtor + broker) to position clients correctly — rate is one factor, but property choice, term structure, amortization, buffer planning all matter.

This rate cut is a positive sign. A small but meaningful shift that can help ease financial pressure and open new opportunities.

If you’re wondering what this change means for you, reach out anytime. There’s no pressure. Just open, honest conversations to help you understand your options and feel empowered about your next move in real estate or mortgage planning.

Subject To Financing

Buying a home is exciting and while today’s market is a buyers market it is still important to understand the importance of having a Subject to Financing clause in your purchase offer. Multiple offers, tight timelines, and seller expectations often push buyers to make bold moves, including waiving their financing condition. While this can give you an edge, it also comes with serious risks. Before you take that leap, here’s what you need to know to protect yourself and your investment.

Understanding What You’re Releasing

A financing condition in your purchase agreement is your safety net. It means your offer is conditional on your lender giving you final mortgage approval. If that approval doesn’t come through, you can walk away without losing your deposit.

Waiving this condition? You’re stepping off that net. Without lender commitment, you’re legally on the hook to complete the purchase even if your financing falls apart.

Why Buyers Still Take the Leap in BC

In many parts of BC, especially Greater Vancouver, the Fraser Valley, and Victoria multiple offers are common. Sellers love clean, unconditional offers because they close faster and carry less uncertainty.

Some buyers drop the financing condition to stand out in a bidding war. In a hot market, that can be the deciding factor in winning a home.

The Added BC Twist

BC’s rules add extra layers of complexity. For example:

• High purchase prices: Any property over $1.5 million is uninsurable under CMHC rules, which means you need at least a 20% down payment and your lender is taking on more risk.
• Appraisal requirements: BC lenders often require appraisals, and in a rising market, appraisal values can come in lower than the offer price. Without the financing condition, you could be on the hook for the difference in cash.
• Unique property types: Many homes like float homes, leasehold properties, or certain strata buildings can face lender restrictions that aren’t obvious until underwriting begins.

Mitigating the Risk: Play It Smart

If you’re thinking about waiving your financing condition, take these steps first:

• Get fully pre-approved, not just pre-qualified. Your broker should have all income documents, down payment proof, and credit checks done in advance.
• Know your lender’s property guidelines. Some lenders won’t finance certain property types or rural locations.
• Stress-test your budget. If the appraisal comes in short or rates move up before closing, can you cover the gap?
• Factor in closing costs. In BC, that means Property Transfer Tax (PTT), potential GST on new builds, and legal fees.

Real BC Example: The Appraisal Gap Shock

A couple in Langley found their dream home listed at $1.15M. They were in a bidding war and decided to waive their financing condition after being told they were “pre-approved.” They won the offer but when the lender’s appraisal came back at $1.08M, the bank would only lend based on the appraised value.

This meant the buyers had to come up with an extra $70,000 in cash, on top of their original down payment, just to close. Without that money, they risked losing both the home and their $30,000 deposit. Fortunately, family stepped in to help, but it was a stressful and costly lesson about waiving conditions too soon.

Checklist Before Waiving Your Financing Condition

Use this quick self-check to reduce your risk before making the leap:

1. Full pre-approval in place (all documents reviewed, credit checked, and income verified).
2. Down payment verified with your lender (including source of funds).
3. Appraisal risk discussed…know the market value and how much of a gap you could cover if needed.
4. Property type reviewed for lender compatibility (strata, leasehold, rural, unique homes).
5. Closing costs calculated (PTT, GST if applicable, legal fees, adjustments).
6. Rate hold secured so you’re protected if rates rise before closing.
7. Emergency funds or backup plan in case of shortfall.
8. Broker has reviewed the offer price relative to recent sales in the area.
9. You’re comfortable with the risk even in a worst-case scenario.

Final Takeaway

Waiving your financing condition can win you the deal in competitive markets but it’s not for everyone.

If your financial documents are rock solid, your pre-approval is thorough, and your broker has reviewed the property type in advance, you can reduce the risk. But remember, without that financing condition, you’re betting on everything going exactly right.

If you’re thinking about this strategy, let’s talk through your situation before you make the call. The right preparation can mean the difference between a dream home and a costly mistake.

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.

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.

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.

2. 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.

3. 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.

4. 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.

5. 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.