Welcome back!

We will start going into some upcoming changes so whether you are looking to purchase or have already purchased, know what these changes are and how they can impact you!

With the housing crisis going on in British Columbia, the provincial government has implemented new rules regarding short-term rentals. These rules aim to regulate the short-term rental market and address concerns related to housing availability and affordability. Some updated rules are:

1. Mandatory licensing: Short-term rental operators are required to obtain a license from the provincial government to legally operate.
2. Limits on rental duration: Primary residences are allowed to be rented out for a maximum of 180 days per year. Secondary residences, such as investment properties, can only be rented out for a maximum of 30 days per year.
3. Platform accountability: Online platforms, such as Airbnb, are required to collect and remit taxes on behalf of their hosts.
4. Strata corporation bylaws: Strata corporations have the authority to restrict or prohibit short-term rentals within their properties.

Short-term rentals may still be allowed for those who are renting out their primary residence (ie secondary suite). But the goal of this is to turn over homes that are used for vacations into homes for people living here.

Penalties for Non-Compliance

Failure to comply with the new short-term rental rules in British Columbia can result in penalties and fines. The exact penalties may vary depending on the specific violation and can be enforced by the provincial government. However, it is important to note that penalites have increased from $2,000 to $50,000.

If you may be under this category of short-term rental, please speak to your legal advisor for a full run-through.

Any other topics you want covered? Or maybe you’d like to talk about some options? Call or text me at 604-880-3000.

Thanks and stay tuned for more!

Sabrina Feng

@findyourfinancials

Welcome back!

I’ll be answering everyone’s top question today which is… how can I get the lowest rate?!

Now pay attention… there are two parts to this:

1. COMMON KNOWLEDGE ITEMS

• improve your credit score: a higher credit score signals less risk and can help you secure a better loan
• shop around: compare rates from different lenders, or better yet… get someone to do it for you (a trusted mortgage broker)
• shorten loan time: not to be confused with TERM of mortgage. A shorter amortization may mean lower rates
• lock in your rate: if you think rates will increase, it’s better to lock in your rate now

2. UNCOMMON KNOWLEDGE ITEMS

• put LESS down payment: when you put less down payment (less than 20% to be exact), your loan automatically becomes insured where YOU pay the insurance premium usually 12-18k in your loan! This insurance is for the lender so of course your rates will be better; they are secured and you paid for it. I typicaly don’t suggest this route unless you don’t have the 20% down, then it’s better to put less down and just get into the market.
• adjustable rate vs variable rate: to get a lower rate, you want to make your payments fluctuate with the rate instead of a fixed payment with variable mortgage. When your payments change, you are guaranteeing the pay down the scheduled amount of principal which means the risk is less for the lender but you’ll need to ask yourself.. can you handle increased payments?!
• choosing a less popular term: it’s the end of 2023 and we are seeing a huge increase in clients choosing 2/3yr fixed rate terms as the expectation is that rates will decrease in a few years. During rate increases, the 2 and 3 year terms increased with more bps than the other

So that all being said… lowest rate may not necessarily be the BEST choice for you as it requires someone who is highly risk tolerant.

What will you be looking for in your mortgage?