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
Bank of Canada lowers policy rate to 2¼%. FOR IMMEDIATE RELEASE Media Relations Ottawa, Ontario October 29, 2025 The Bank of Canada today reduced its target for the overnight rate by 25 basis points to 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. With the effects of US trade actions on economic growth and inflation somewhat clearer, the Bank has returned to its usual practice of providing a projection for the global and Canadian economies in this Monetary Policy Report (MPR). Because US trade policy remains unpredictable and uncertainty is still higher than normal, this projection is subject to a wider-than-usual range of risks. While the global economy has been resilient to the historic rise in US tariffs, the impact is becoming more evident. Trade relationships are being reconfigured and ongoing trade tensions are dampening investment in many countries. In the MPR projection, the global economy slows from about 3¼% in 2025 to about 3% in 2026 and 2027. In the United States, economic activity has been strong, supported by the boom in AI investment. At the same time, employment growth has slowed and tariffs have started to push up consumer prices. Growth in the euro area is decelerating due to weaker exports and slowing domestic demand. In China, lower exports to the United States have been offset by higher exports to other countries, but business investment has weakened. Global financial conditions have eased further since July and oil prices have been fairly stable. The Canadian dollar has depreciated slightly against the US dollar. Canada’s economy contracted by 1.6% in the second quarter, reflecting a drop in exports and weak business investment amid heightened uncertainty. Meanwhile, household spending grew at a healthy pace. US trade actions and related uncertainty are having severe effects on targeted sectors including autos, steel, aluminum, and lumber. As a result, GDP growth is expected to be weak in the second half of the year. Growth will get some support from rising consumer and government spending and residential investment, and then pick up gradually as exports and business investment begin to recover. Canada’s labour market remains soft. Employment gains in September followed two months of sizeable losses. Job losses continue to build in trade-sensitive sectors and hiring has been weak across the economy. The unemployment rate remained at 7.1% in September and wage growth has slowed. Slower population growth means fewer new jobs are needed to keep the employment rate steady. The Bank projects GDP will grow by 1.2% in 2025, 1.1% in 2026 and 1.6% in 2027. On a quarterly basis, growth strengthens in 2026 after a weak second half of this year. Excess capacity in the economy is expected to persist and be taken up gradually. CPI inflation was 2.4% in September, slightly higher than the Bank had anticipated. Inflation excluding taxes was 2.9%. The Bank’s preferred measures of core inflation have been sticky around 3%. Expanding the range of indicators to include alternative measures of core inflation and the distribution of price changes among CPI components suggests underlying inflation remains around 2½%. The Bank expects inflationary pressures to ease in the months ahead and CPI inflation to remain near 2% over the projection horizon. With ongoing weakness in the economy and inflation expected to remain close to the 2% target, Governing Council decided to cut the policy rate by 25 basis points. If inflation and economic activity evolve broadly in line with the October projection, Governing Council sees the current policy rate at about the right level to keep inflation close to 2% while helping the economy through this period of structural adjustment. If the outlook changes, we are prepared to respond. Governing Council will be assessing incoming data carefully relative to the Bank’s forecast. The Canadian economy faces a difficult transition. The structural damage caused by the trade conflict reduces the capacity of the economy and adds costs. This limits the role that monetary policy can play to boost demand while maintaining low inflation. The Bank is focused on ensuring that Canadians continue to have confidence in price stability through this period of global upheaval. Information note The next scheduled date for announcing the overnight rate target is December 10, 2025. The Bank’s next MPR will be released on January 28, 2026. Read the October 29th, 2025 Monetary Report
For many parents, assisting your kid with becoming a first-time homebuyer feels like a natural next step – especially in today’s housing market, where affordability challenges make entering the market more difficult than ever. But, while the instinct to help is admirable, the decision must be treated as a financial strategy, not an emotional one. Understanding the different ways to assist – and the implications of each – can help parents make informed, rational choices that protect everyone involved. Here are three key ways you can help your children enter the property market: Gifted down payment. A gift is the most straightforward option. You provide funds to help with the down payment, which can increase affordability and reduce mortgage insurance costs. Pros: Simple structure – no ongoing liability for parents; Improves your kid’s qualification strength and purchasing power. Cons: You have no legal or financial ownership in the property; The funds must truly be a gift – not a loan – which means you should be prepared to part with that money permanently. Co-Signing on the mortgage. A co-signer shares legal responsibility for the mortgage. Your income and credit help your kid qualify for a larger loan. Pros: Helps your child qualify when their income alone isn’t sufficient; May secure better rates or terms. Cons: You’re equally liable for payments; Any missed payment affects both parties’ credit; Can complicate your future borrowing power. Acting as a guarantor. A guarantor promises to step in if the borrower defaults, but doesn’t share ownership or contribute to payments unless necessary. Pros: Provides lender security without joint title ownership; Less immediate financial involvement than co-signing. Cons: Still carries significant risk if your kid defaults; Can limit your future borrowing capacity. Keep emotions out of your decision Buying a home is emotional enough, but helping your kid buy one shouldn’t be. Parents must look beyond the desire to “make it easier” for your child and carefully assess your own financial position, retirement plans and risk tolerance. The best support isn’t always financial – sometimes it’s helping your kid plan, budget and make sound borrowing decisions. Helping your child purchase a home can be rewarding, but it has to be made as a financial decision first. Understanding the structure, risk and long-term implications of each option outlined above ensures the help you offer today doesn’t create challenges tomorrow – for you or your kid. Have questions about helping your children buy a home? I’m here to help: 604-788-8693 | tanya@tanyatoye.ca
