What BC Homebuyers Need to Know About New Mortgage Rules
Tanya Toye • August 21, 2025
If you’re planning to buy a home in British Columbia in the next few years, there’s good news: new rules are coming that will give you stronger protections when it comes to your mortgage.
The province has introduced the Mortgage Services Act, which officially takes effect in fall 2026. While that may seem a little way off, it’s an important change that every homebuyer should know about – because it’s designed to make the mortgage process safer, more transparent and more reliable.
For years, the mortgage industry in BC was regulated by the Mortgage Brokers Act, which dates all the way back to 1972. Although it was updated over time, it hasn’t kept up with the way the housing and financial markets have changed. The new Mortgage Services Act modernizes the rules and brings in stronger protections for consumers.
Here’s how this benefits you as a homebuyer:
- Stronger consumer protection – Licensed mortgage professionals will be held to higher standards, meaning you can trust that the advice you receive is clear, honest and in your best interest
- More accountability – The BC Financial Services Authority (BCFSA) will have greater powers to oversee the industry, investigate issues and take action if something isn’t right
- A safer housing market – The new rules also crack down on fraud and money laundering, which helps protect the integrity of the market and gives you more peace of mind
- Clear licensing categories – Mortgage professionals will be licensed based on the type of services they provide – whether they’re dealing, trading, administering or lending mortgages. That means more transparency about who does what and better protection for you as a client
These updates are about making sure homebuyers like you have the confidence that your mortgage is being handled with care and professionalism.
The act will be fully in place by next fall, giving the industry time to prepare. As your mortgage broker, my role is to stay on top of these changes and ensure you always have the right advice and support to navigate your options.
If you’re planning to buy in the near future – or simply want to understand what these changes could mean for you – I’m here to help: 604-788-8693 |
tanya@tanyatoye.ca
Why the Property Matters When You’re Qualifying for a Mortgage When qualifying for a mortgage, lenders typically look at four core areas: Income Credit Down payment or equity The property itself Most buyers focus heavily on income, credit, and savings—and for good reason. But even if those boxes are checked, the property can still determine whether a mortgage is approved. Why Lenders Care About the Property From a lender’s perspective, the property is the collateral for the mortgage. In the unlikely event of default, they need to know the home can be sold quickly and at fair market value to recover their funds. Because of this, lenders are careful about the condition, value, and marketability of any property they finance. Homes that are in poor repair, unconventional, or overpriced can raise red flags—even when the borrower is well qualified. Appraisals Are Always Part of the Process Every mortgage requires an appraisal to confirm value. Insured mortgages (through CMHC, Sagen, or Canada Guaranty) often use an automated valuation model completed online. Conventional mortgages typically require a full, on-site appraisal by a certified appraiser. This appraisal is not optional and happens after an offer is accepted—not at the pre-approval stage. Why Pre-Approvals Aren’t a Guarantee A pre-approval is a great first step, but it only assesses you, not the property. Once you’ve made an offer, the lender must approve the specific home you’re buying. Understanding this upfront helps avoid surprises and confusion later in the process. The Risk of Buying Without a Financing Condition In competitive markets, buyers sometimes remove financing conditions to strengthen their offer. However, this comes with risk. If the appraisal comes back low—or the lender is concerned about the property’s condition—you could be denied financing after the offer is firm. In that scenario, your deposit may be at risk. Buying a Home That Needs Work If you’re considering a property that isn’t in perfect condition, there are solutions. A purchase plus improvements program allows you to buy a home and include renovation costs in your mortgage. The process is structured and requires planning, but it can be an excellent way to turn a fixer-upper into a great long-term investment. Final Thoughts Mortgage approval isn’t based solely on your finances—the property matters just as much. Knowing this ahead of time helps you make smarter offers, reduce risk, and plan more effectively. If you’re buying a property that needs work or want clarity on how a lender may view a specific home, feel free to reach out. I’d be happy to walk you through your options and help you plan with confidence.
If the title of this article caught your attention, chances are your family is growing. Congratulations. If you’re thinking now is the right time to move into a home that better fits your growing family—but you’re unsure how parental leave affects your ability to qualify for a mortgage—you’re in the right place. Here’s the good news. Qualifying for a mortgage while on parental leave is possible when it’s done correctly. When you work with an independent mortgage professional, lenders can often qualify you based on your return-to-work income , as long as you can provide documentation confirming you have guaranteed employment waiting for you. A word of caution If you walk into a bank branch and disclose that you’re currently on parental leave, there’s a chance the bank will only allow you to qualify using your parental leave income. That can significantly reduce your borrowing power. Parental leave income is typically limited to 55% of your previous earnings, up to a weekly maximum. Qualifying on that amount alone can restrict your options and impact the type of home you can purchase. Why lender choice matters One of the biggest advantages of working with an independent mortgage professional is choice . You’re not limited to one lender’s rules or products. Some lenders will allow you to qualify using 100% of your confirmed return-to-work income , which can make a meaningful difference in your approval amount and overall options. What you’ll need to qualify Most lenders will require an employment letter that includes: Employer name (preferably on company letterhead) Your job title Original start date (to confirm probation has been completed) Confirmed return-to-work date Guaranteed salary upon return Lenders want reassurance that your income will resume once parental leave ends. You may also be asked to provide income history from the past couple of years, which is standard for most mortgage applications. One important note Whether or not you actually return to work after parental leave is entirely your decision. From a mortgage perspective, qualification is based on having a confirmed position available to you at the time of approval. If you have questions about qualifying for a mortgage while on parental leave—or anything mortgage-related—please connect anytime. I’d be happy to walk you through your options and help you plan with confidence.
