Why Moving to Vancouver Island Is Worth the Effort
Tanya Toye • February 20, 2025
If you’ve ever considered making the move to Vancouver Island, there are endless benefits. I speak from first-hand experience, since I moved from the mainland to Nanaimo with my family seeking an enhanced quality of life with a more affordable cost of living.
Vancouver Island is known for its stunning scenery, relaxed pace of life and welcoming communities – qualities that make it a sought-after destination. But did you know that even if you’re still commuting to the mainland for work, moving to Vancouver Island can offer a range of perks, including the following?
- Stunning Natural Beauty and Peaceful Surroundings
One of the most obvious bonuses is the beauty of the island. Surrounded by ocean, lush forests and majestic mountains, Vancouver Island offers unmatched outdoor opportunities, including beaches, forests, parks, trails, ocean sports, skiing, etc. Whether you're into hiking, kayaking or simply enjoying the tranquility of nature, it’s truly hard to beat the views and calm environment that island living offers. After a long day of work, returning to this serene atmosphere is an absolute treat. - Affordable Housing
Real estate prices on the mainland, especially in Vancouver, have increased significantly in recent years. Vancouver Island offers more affordable housing options, from cozy cottages to larger homes with space to spare. Even with the added cost of commuting, many find that they can own their dream home on the island while still working in Vancouver. - Work-Life Balance
With options like ferries or quick flights, you can still maintain your mainland job while enjoying the benefits of island living, leading to an ideal work-life balance. Many commuters appreciate the ability to escape to the island’s calm atmosphere after the busy workweek. - Stronger Sense of Community
Island life tends to foster a strong sense of community. Smaller towns and neighbourhoods often have close-knit vibes, where people know each other and enjoy a slower, more relaxed pace. It’s a great place to raise a family or retire, and many find it easier to build meaningful connections compared to the hustle of Vancouver.
If you already own a home, there are several considerations to make when planning to purchase property on the island. Do you need to align the sale with the new purchase? Do you have the option to port an existing mortgage and, if so, how do you plan for this? These are just a couple questions I’ll go through with you before you decide to buy a property.
It’s also essential to connect with an island realtor as soon as you’ve been prequalified for financing. Having clear and open communication with a local real estate professional is extremely important, since you won’t always have the opportunity to be present. You can look to them for relevant information regarding the property, the city and its communities.
If you plan to build a new home or renovate an existing property to suit your needs, there are various factors that influence your decision. In my own experience, location and budget were the driving forces. Here are some other things to note:
- Take your time to find a reputable builder
- You may opt to use an interior designer from Vancouver, or your local municipality, to partner with the selected builder, which can simplify the work you’ll need to put into your project
- Inspectors and engineers – engage these professionals early on when planning construction or a major renovation
It’s my pleasure to help make your move to the island as seamless as possible: 604-788-8693 | tanya@tanyatoye.ca
Can You Afford That Mortgage? Let’s Talk About Debt Service Ratios One of the biggest factors lenders look at when deciding whether you qualify for a mortgage is something called your debt service ratios. It’s a financial check-up to make sure you can handle the payments—not just for your new home, but for everything else you owe as well. If you’d rather skip the math and have someone walk through this with you, that’s what I’m here for. But if you like to understand how things work behind the scenes, keep reading. We’re going to break down what these ratios are, how to calculate them, and why they matter when it comes to getting approved. What Are Debt Service Ratios? Debt service ratios measure your ability to manage your financial obligations based on your income. There are two key ratios lenders care about: Gross Debt Service (GDS) This looks at the percentage of your income that would go toward housing expenses only. 2. Total Debt Service (TDS) This includes your housing costs plus all other debt payments—car loans, credit cards, student loans, support payments, etc. How to Calculate GDS and TDS Let’s break down the formulas. GDS Formula: (P + I + T + H + Condo Fees*) ÷ Gross Monthly Income Where: P = Principal I = Interest T = Property Taxes H = Heat Condo fees are usually calculated at 50% of the total amount TDS Formula: (GDS + Monthly Debt Payments) ÷ Gross Monthly Income These ratios tell lenders if your budget is already stretched too thin—or if you’ve got room to safely take on a mortgage. How High Is Too High? Most lenders follow maximum thresholds, especially for insured (high-ratio) mortgages. As of now, those limits are typically: GDS: Max 39% TDS: Max 44% Go above those numbers and your application could be declined, regardless of how confident you feel about your ability to manage the payments. Real-World Example Let’s say you’re earning $90,000 a year, or $7,500 a month. You find a home you love, and the monthly housing costs (mortgage payment, property tax, heat) total $1,700/month. GDS = $1,700 ÷ $7,500 = 22.7% You’re well under the 39% cap—so far, so good. Now factor in your other monthly obligations: Car loan: $300 Child support: $500 Credit card/line of credit payments: $700 Total other debt = $1,500/month Now add that to the $1,700 in housing costs: TDS = $3,200 ÷ $7,500 = 42.7% Uh oh. Even though your GDS looks great, your TDS is just over the 42% limit. That could put your mortgage approval at risk—even if you’re paying similar or higher rent now. What Can You Do? In cases like this, small adjustments can make a big difference: Consolidate or restructure your debts to lower monthly payments Reallocate part of your down payment to reduce high-interest debt Add a co-applicant to increase qualifying income Wait and build savings or credit strength before applying This is where working with an experienced mortgage professional pays off. We can look at your entire financial picture and help you make strategic moves to qualify confidently. Don’t Leave It to Chance Everyone’s situation is different, and debt service ratios aren’t something you want to guess at. The earlier you start the conversation, the more time you’ll have to improve your numbers and boost your chances of approval. If you're wondering how much home you can afford—or want help analyzing your own GDS and TDS—let’s connect. I’d be happy to walk through your numbers and help you build a solid mortgage strategy.
If you're looking to buy a new property, refinance, or renew an existing mortgage, chances are, you're considering either a fixed or variable rate mortgage. Figuring out which one is the best is entirely up to you! So here's some information to help you along the way. Firstly, let's talk about the fixed-rate mortgage as this is most common and most heavily endorsed by the banks. With a fixed-rate mortgage, your interest rate is "fixed" for a certain term, anywhere from 6 months to 10 years, with the typical term being five years. If market rates fluctuate anytime after you sign on the dotted line, your mortgage rate won't change. You're a rock; your rate is set in stone. Typically a fixed-rate mortgage has a higher rate than a variable. Alternatively, a variable rate is not set in stone; instead, it fluctuates with the market. The variable rate is a component (either plus or minus) to the prime rate. So if the prime rate (set by the government and banks) is 2.45% and the current variable rate is Prime minus .45%, your effective rate would be 2%. If three months after you sign your mortgage documents, the prime rate goes up by .25%, your rate would then move to 2.25%. Typically, variable rates come with a five-year term, although some lenders allow you to go with a shorter term. At first glance, the fixed-rate mortgage seems to be the safe bet, while the variable-rate mortgage appears to be the wild card. However, this might not be the case. Here's the problem, what this doesn't account for is the fact that a fixed-rate mortgage and a variable-rate mortgage have two very different ways of calculating the penalty should you need to break your mortgage. If you decide to break your variable rate mortgage, regardless of how much you have left on your term, you will end up owing three months interest, which works out to roughly two to two and a half payments. Easy to calculate and not that bad. With a fixed-rate mortgage, you will pay the greater of either three months interest or what is called an interest rate differential (IRD) penalty. As every lender calculates their IRD penalty differently, and that calculation is based on market fluctuations, the contract rate at the time you signed your mortgage, the discount they provided you at that time, and the remaining time left on your term, there is no way to guess what that penalty will be. However, with that said, if you end up paying an IRD, it won't be pleasant. If you've ever heard horror stories of banks charging outrageous penalties to break a mortgage, this is an interest rate differential. It's not uncommon to see penalties of 10x the amount for a fixed-rate mortgage compared to a variable-rate mortgage or up to 4.5% of the outstanding mortgage balance. So here's a simple comparison. A fixed-rate mortgage has a higher initial payment than a variable-rate mortgage but remains stable throughout your term. The penalty for breaking a fixed-rate mortgage is unpredictable and can be upwards of 4.5% of the outstanding mortgage balance. A variable-rate mortgage has a lower initial payment than a fixed-rate mortgage but fluctuates with prime throughout your term. The penalty for breaking a variable-rate mortgage is predictable at 3 months interest which equals roughly two and a half payments. The goal of any mortgage should be to pay the least amount of money back to the lender. This is called lowering your overall cost of borrowing. While a fixed-rate mortgage provides you with a more stable payment, the variable rate does a better job of accommodating when "life happens." If you’ve got questions, connect anytime. It would be a pleasure to work through the options together.
