Matthew Carson RE/MAX : Blog : Latest Blog Posts

New Home Warranty in BC: How It Works (2026 Guide for Homeowners)

Thu, 02 Apr 2026 22:44:52 GMT

Learn how the new home warranty in BC works. Understand 2-5-10 coverage, what’s included, exclusions, and how to file a claim in British Columbia.

Strata Property Ownership Types in BC: Common Property, Limited Common Property & Private Property Explained

Thu, 02 Apr 2026 22:15:31 GMT

Learn the different types of property ownership in BC, including common property, limited common property, and private property. A clear 2026 guide for strata buyers.

Iran War 2026: Impact on Canada’s Economy, Mortgage Rates, and Housing Market (Expert Forecast)

Thu, 02 Apr 2026 21:19:05 GMT

How will the 2026 Iran war affect Canada’s economy, mortgage rates, and housing prices? Learn expert insights, forecasts, and what it means for buyers and homeowners.

How Variable Mortgage Rates Work in Canada (And How They’re Calculated) 2026 Guide

Tue, 24 Mar 2026 18:13:27 GMT

If you're buying a home in British Columbia—especially in markets like Victoria—understanding variable mortgage rates is essential. While fixed rates offer stability, variable rates can provide lower initial costs and potential long-term savings. However, they also come with more uncertainty.

In this guide, we’ll explain how variable mortgage rates work in Canada, how they’re calculated, and whether they might be the right choice for your situation.

What Is a Variable Mortgage Rate?

A variable mortgage rate is an interest rate that can change over time based on movements in a lender’s prime rate. Unlike fixed rates, your interest cost may rise or fall during your mortgage term.

Variable mortgages in Canada are typically offered in two formats:

Adjustable payment variable rate: Your monthly payment changes when rates change
Fixed payment variable rate: Your payment stays the same, but the portion going toward interest vs. principal shifts

How Variable Mortgage Rates Work

Variable rates are directly influenced by your lender’s prime rate, which is based on the Bank of Canada’s overnight lending rate.

Here’s how it works:

The Bank of Canada sets the overnight rate
Lenders adjust their prime rates accordingly
Your mortgage rate = Prime rate ± a discount or premium

Example:

If the prime rate is 6.00% and your mortgage is Prime - 0.80%, your rate would be 5.20%.

If the Bank of Canada raises rates, your mortgage rate increases. If rates fall, your rate decreases.

How Are Variable Mortgage Rates Calculated in Canada?

Variable mortgage rates are influenced by a different set of factors compared to fixed rates. Here are the main components:

1. Bank of Canada Overnight Rate

The biggest driver of variable mortgage rates is the Bank of Canada’s policy interest rate.

When the Bank raises rates → variable mortgage rates increase
When the Bank cuts rates → variable mortgage rates decrease

The Bank adjusts this rate to control inflation and stabilize the economy.

2. Lender Prime Rates

Each lender sets its own prime rate, but they typically move in line with the Bank of Canada.

Your variable rate is based on:

Prime rate
Plus or minus your negotiated discount

Even a small difference in discount (e.g., Prime - 0.70% vs. Prime - 0.90%) can significantly impact your costs over time.

3. Inflation

Inflation heavily influences decisions made by the Bank of Canada.

Rising inflation → higher interest rates → higher variable mortgage rates
Falling inflation → lower rates → lower borrowing costs

For buyers in BC, inflation trends can directly impact affordability in real time.

4. Economic Conditions

Economic growth, employment levels, and global factors all play a role.

Strong economy → potential rate increases
Weak economy → possible rate cuts

Variable rates tend to react more quickly to economic changes than fixed rates.

5. Your Financial Profile

Just like with fixed mortgages, your personal financial situation affects your rate:

Credit score
Income and job stability
Debt levels
Down payment
Property location (including Victoria and surrounding BC areas)

Stronger borrowers can often negotiate better discounts from prime.

Variable vs. Fixed Mortgage Rates: Key Differences

Feature	Variable Rate	Fixed Rate
Rate Stability	Lower	High
Payment Predictability	Can change	Fixed
Initial Rates	Usually lower	Usually higher
Risk Level	Higher	Lower
Flexibility	Often more flexible	Less flexible

In high-cost areas like Victoria, some buyers choose variable rates to maximize affordability at the start of their mortgage.

Pros and Cons of Variable Mortgage Rates

Advantages

Lower initial interest rates (in many cases)
Potential to save money if rates decrease
Often lower penalties for breaking the mortgage
Greater flexibility

Disadvantages

Payments or interest costs can increase
Less predictability for budgeting
Exposure to rising interest rates

Is a Variable Mortgage Right for You?

A variable mortgage might be a good fit if:

You’re comfortable with some risk
You believe interest rates will decrease or stabilize
You have flexibility in your budget
You don’t plan to stay in the mortgage long-term

For buyers in Victoria, where home prices are high, variable rates can help with initial affordability—but they require careful planning.

Tips for Managing a Variable Mortgage in BC

If you're considering a variable rate in British Columbia, here are some smart strategies:

Stress test your budget: Make sure you can handle rate increases
Lock in if needed: Many lenders allow you to switch to a fixed rate
Watch Bank of Canada announcements: Rate decisions directly impact your mortgage
Make extra payments when possible: Helps offset interest increases
Work with a mortgage broker: Especially helpful in competitive markets like Victoria

Final Thoughts

Variable mortgage rates can offer meaningful savings—but they come with uncertainty. In a dynamic housing market like Victoria, BC, understanding how these rates work is crucial before making a decision.

By knowing how variable rates are calculated—and how they respond to economic changes—you can better prepare for the ups and downs and choose the mortgage strategy that aligns with your financial goals.

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How Fixed Mortgage Rates Work in Canada (And How They’re Calculated) 2026 Guide

Tue, 24 Mar 2026 18:07:39 GMT

If you're planning to buy a home in British Columbia—especially in competitive markets like Victoria—understanding how fixed mortgage rates work can save you thousands of dollars over the life of your loan. Fixed rates are one of the most popular mortgage options in Canada, but many homebuyers don’t fully understand what determines these rates or how lenders calculate them.

In this guide, we’ll break down how fixed mortgage rates work, what influences them, and how you can secure the best rate possible.

What Is a Fixed Mortgage Rate?

A fixed mortgage rate is an interest rate that stays the same for the entire term of your mortgage. In Canada, common fixed terms include 1-year, 3-year, and 5-year options, with 5-year fixed being the most popular.

This means:

Your interest rate does not change during the fixed term of the loan
Your monthly mortgage payments remain consistent
You’re protected from rising interest rates

For many homeowners, predictability is a major advantage when budgeting for housing costs.

How Fixed Mortgage Rates Work

When you take out a fixed-rate mortgage, your lender agrees to lend you money at a set interest rate for a specific period (the term -this is the 1, 3, or 5 year period that was previously mentioned). Even if market rates rise or fall, your rate remains locked in until the term ends.

At the end of your term, you’ll need to:

Renew your mortgage at current rates, or
Switch lenders, or
Refinance your mortgage

How Are Fixed Mortgage Rates Calculated in Canada?

Unlike variable rates (which are tied closely to the Bank of Canada’s overnight rate), fixed mortgage rates are primarily influenced by the bond market—specifically Government of Canada bond yields.

Here are the key factors that determine fixed mortgage rates:

1. Government of Canada Bond Yields

The most important factor is the yield on Government of Canada bonds, especially the 5-year bond for 5-year fixed mortgages.

When bond yields rise → fixed mortgage rates usually increase
When bond yields fall → fixed mortgage rates tend to decrease

Lenders use bond yields as a benchmark because they reflect the cost of borrowing money over a set period.

2. Lender Profit Margins

Banks and mortgage lenders add a small markup to bond yields to cover their:

Operational costs
Risk
Profit

This markup can vary between lenders, which is why shopping around for rates is so important in BC.

3. Inflation Expectations

Inflation plays a major role in determining bond yields and, in turn, fixed mortgage rates.

Higher inflation → higher bond yields → higher mortgage rates
Lower inflation → lower bond yields → lower mortgage rates

If inflation is expected to rise, lenders will increase fixed rates to protect their returns.

4. Economic Conditions

The overall health of the Canadian economy influences fixed rates:

Strong economic growth can push rates higher
Economic uncertainty can lead to lower rates

For example, during times of economic slowdown, bond yields often drop, which can lead to lower fixed mortgage rates. This should make people think twice about wishing for lower mortgage rates as it often means that the overall economy is sputtering.

5. Your Personal Financial Profile

While market factors set the baseline, your individual rate depends on:

Credit score
Income stability
Debt-to-income ratio
Down payment amount
Property type and location

Borrowers with stronger financial profiles typically qualify for lower rates.

Fixed vs. Variable Mortgage Rates: Quick Comparison

Feature	Fixed Rate	Variable Rate
Stability	High	Lower
Payment Changes	No	Yes
Risk Level	Lower	Higher
Potential Savings	Lower in Most Economies	Potentially higher

In markets like Victoria, where home prices are high, many buyers prefer fixed rates for peace of mind and predictable payments.

Pros and Cons of Fixed Mortgage Rates

Advantages

Predictable monthly payments
Protection from rising interest rates
Easier budgeting

Disadvantages

Typically higher than variable rates initially
Less flexibility if rates drop
Potential penalties for breaking the mortgage early

Tips for Getting the Best Fixed Mortgage Rate in BC

If you're buying in Victoria or elsewhere in British Columbia, here are some practical tips:

Shop around: Compare multiple lenders and mortgage brokers
Improve your credit score: Even small improvements can lower your rate
Increase your down payment: Reduces lender risk
Lock in your rate early: Many lenders offer rate holds (often 90–120 days)
Work with a local mortgage broker: They understand the BC housing market

Final Thoughts

Fixed mortgage rates offer stability and peace of mind—two things that are especially valuable in uncertain economic times. While they may not always be the cheapest option upfront, they provide long-term predictability that many homeowners value, and can save homeowners money in a tightening economy (such as the one we experienced in 2022.)

Understanding how these rates are calculated—especially the role of bond yields and economic conditions—can help you make smarter decisions when choosing your mortgage, and hopefully save you money!

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Oil Storage Tanks and Real Estate in BC: What Home Buyers & Sellers Need to Know (2026 Guide)

Mon, 23 Mar 2026 22:55:36 GMT

Buying or selling in British Columbia? Learn how oil storage tanks impact property value, financing, and insurance in Victoria and Vancouver.

First-Time Home Buyer GST/HST Rebate (2025–2026): How to Save Up to $50,000 on Your First Home

Thu, 19 Mar 2026 22:52:08 GMT

Buying your first home is exciting—but it can also be overwhelming and expensive. The good news? If you're purchasing or building a new home in Canada, you may qualify for the First-Time Home Buyer GST/HST rebate, saving you up to $50,000.

If you're thinking about buying your first home, this guide will help you understand how the rebate works—and how to make sure you don’t leave money on the table.

💰 What Is the First-Time Home Buyer GST/HST Rebate?

This federal rebate helps eligible buyers recover some or all of the GST (or federal portion of HST) paid on primary residences that are:

Newly built homes
Substantially renovated homes
Owner-built homes

🏡 How Much Can You Save?

Your rebate depends on the purchase price:

Homes under $1 million → Up to $50,000 back (100%)
$1 million – $1.5 million → Partial rebate (gradually reduced) ie if the purchase price is $1.25 million, you’ll receive $25,000 or 50% of the rebate
Over $1.5 million → No rebate

✅ Do You Qualify as a First-Time Home Buyer?

You likely qualify if:

You’re 18 or older
You’re a Canadian citizen or permanent resident
You haven’t owned and lived in a home in the last five calendar years
You’ve never claimed this rebate before
You entered into the new home purchase contract after March 20th 2025

👉 Cancelling and re-writing an existing new home or pre-construction contract dated before March 20th 2025 will not qualify you for the rebate

🏠 What Types of Homes Are Eligible?

You may qualify if you:

Buy a new construction home from a builder
Build or substantially renovate a home

With partial rebates offered on

Purchases of a co-op housing unit
Buying a mobile or floating home

🚨 Pro Tip

The GST rebate is assignable, meaning that in a buyers’ market (such as the one that we’re in now), you can negotiate with the builder to assign the rebate to them, and avoid paying the GST out of pocket at closing time!

⏱️ When Will You Receive the Money?

The CRA estimates that rebates should arrive within six months of submitting the application.

📄 What You Need to Apply

Make sure you keep:

Purchase agreement
Invoices (for builds/renos)
Proof of occupancy
Completed rebate forms
Notice of assessment

👉 Keep everything for 6 years

👇 Thinking About Buying Your First Home?

This rebate is just one of many programs available to first-time buyers—and navigating them properly can save you tens of thousands of dollars.

🎯 Get Expert Guidance (Free Consultation)

If you're considering buying in today’s market, I can help you:

Confirm your rebate eligibility
Estimate your potential savings
Find new construction homes that qualify
Guide you through the entire buying process

👉 Send me a message and I’ll walk you through your options.

📍 Local Insight Matters

Every market is different. If you're buying in your area, understanding:

Local pricing trends
Builder opportunities
New developments

…can make a huge difference in what you qualify for—and how much you save.

🚀 Final Thoughts

The First-Time Home Buyer GST/HST rebate is a powerful opportunity—but only if you know how to use it.

If you're planning to buy soon, the smartest move you can make is getting expert advice early so you don’t miss out.

👉 Want to know how much you could save?

Reach out today for a free, no-obligation consultation and get a personalized breakdown of your potential rebate and home buying options.

End-of-Life Planning in British Columbia: The Complete Guide (2026)

Thu, 19 Mar 2026 21:43:49 GMT

A complete guide to end-of-life planning in BC. Learn about wills, executors, power of attorney, and healthcare planning to protect your loved ones.

Can Foreign Buyers Still Purchase Property in Canada? Yes! Here’s How:

Wed, 07 May 2025 23:03:53 GMT

🤔 What is the ‘Foreign Buyer Ban’ Anyways?

If you’ve been following Canadian real estate news, you’ve likely heard about the Prohibition on the Purchase of Residential Property by Non-Canadians Act, commonly referred to as the ‘Foreign Buyer Ban.’ This legislation, which was initially rolled out on January 1 2023 and is currently in effect through to January 1 2027, was introduced as an attempt to address housing affordability in major national markets by restricting foreign ownership of real estate.

While the headline may sound absolute, the reality of the situation is more nuanced. There are several key exemptions built into the Act—meaning some non-Canadians are still eligible to buy property in Canada.

🍁 Who Is Considered a “Non-Canadian”?

Under the Act, the definition of a “non-Canadian” includes:

Individuals who are not a Canadian citizen, permanent resident, or a person registered as an Indian under the Indian Act
Corporations not incorporated at either the provincial or federal level in Canada
Canadian corporations controlled by non-Canadians
A prescribed person or entity

✅ Who May Be Eligible For an Exemption?

But there are several categories of individuals and entities that are exempt from the prohibition. Here’s a breakdown of who qualifies for an exemption under the current rules.

1. International Students

International students may be eligible to buy a home in Canada if they meet all of the following criteria:

They’ve filed tax returns in Canada for at least 5 years.
They’ve been physically present in Canada for a minimum of 244 days per year in each of those years.
The property being purchased is less than $500,000.
They have not purchased any other residential property in Canada.

2. Foreign Workers

Temporary foreign workers may also be exempt from the Foreign Buyer Ban if they:

Hold a valid work permit or are authorized to work in Canada.
Have worked full-time in Canada for at least 3 of the past 4 years.
Have filed income tax returns in Canada for at least 3 of those years.

3. Refugees and Protected Persons

Individuals who have been granted refugee status or are considered protected persons under Canadian immigration law and are not subject to the ban. This reflects Canada’s commitment to human rights and support for those seeking asylum.

4. Diplomats and Foreign Mission Staff

Members of foreign missions—including diplomats and consular staff—who are accredited by Global Affairs Canada and have been posted to Canada are allowed to purchase residential property.

5. Spouses or Common-Law Partners of Canadians

If a non-Canadian is buying property jointly with their Canadian or permanent resident spouse or common-law partner, the purchase is allowed—even if the non-Canadian would otherwise be prohibited.

6. Certain Types of Properties and Locations

The ban only applies to residential properties in urban areas, specifically Census Metropolitan Areas (CMAs) and Census Agglomerations (CAs). That means:

Rural properties, vacation cottages, and recreational land outside of urban boundaries are often exempt.
The Act does not apply to commercial real estate, multi-unit buildings with four or more units, or industrial properties.

This map is incredibly useful in identifying those relevant areas.

7. Property Transfers Through Legal Means

The ban does not apply to properties obtained through inheritance, divorce settlements, or other legal proceedings, such as debt recovery or court orders.

💭 Final Thoughts

While Canada’s foreign buyer ban has introduced significant restrictions, it's not a blanket prohibition. Several categories of non-Canadians can still purchase homes if they meet the right criteria.

If you’re unsure whether or not you qualify under one of these exemptions, it’s always wise to consult with a real estate professional and/or legal advisor.

Have questions about how the Foreign Buyer Ban could affect your plans or your property? Let’s talk—I’d be happy to guide you through your options!

Disclaimer:
This article is for informational purposes only and should not be considered as financial, legal, or professional advice. Matthew Carson and RE/MAX Camosun make no representations as to the accuracy, completeness, or suitability of the information provided. Readers are encouraged to consult with qualified professionals regarding their specific real estate, financial, and legal circumstances. The views expressed in this article may not necessarily reflect the views of RE/MAX Camosun or its agents. Real estate market conditions and government policies are subject to change, and readers should verify the latest updates with appropriate professionals.

Poly-B Plumbing? What Now?

Mon, 05 May 2025 23:13:39 GMT

❓ What is Poly-B Piping and Where Do I Find It?

Polybutylene (Poly-B) was widely used in residential plumbing systems from the late 1970s through the mid-1990s. The National Plumbing Code of Canada banned Poly B piping in 1997, and the government of Canada officially banned its use in 2005. While it was initially favoured for its cost-effectiveness and ease of installation, it has since been associated with a higher risk of failure due to deterioration over time. Safety and insurance issues make identifying Poly-B piping in your home a priority, especially if you’re planning on buying or selling a property.

🔍 Key Characteristics of Poly-B Piping

Colour: Typically grey, but can also be found in blue, black, white, or silver. Poly-B pipes were often connected using copper, brass, or plastic (acetal) fittings.
Stamping: Often marked with “PB2110,” “CSA-B 137.8,” or similar codes.
Material: Flexible plastic resin, unlike rigid materials like copper or PVC.
Diameter: Commonly ½” to 1” in diameter.
Usage: Exclusively used for water supply lines; not for waste, drain, or vent piping. Some installations may have used copper "stub-outs" (short copper sections) at fixtures, while the main lines are Poly-B.

🏠 Common Locations to Inspect

Interior:
- Under sinks and toilets.
- Near the water heater.
- In unfinished basements or attics.
- Behind access panels (such as ceiling tiles) or drywall.
Exterior:
- At the main water shut-off valve.
- At the water meter.
- Where the water line enters the home through the basement wall or floor.

⚠️ I found Poly-B. So what?

Due to the aforementioned increased failure rate of Poly-B, almost every insurer is at this point will not bind a policy on a home with Poly-B plumbing (and the ones that do will charge you an arm and a leg.) Most lenders will not issue mortgages on uninsured properties, so dealing with your Poly-B problem is essentially a must.

🛠️ What Are My Options?

Buying:
If there’s no mention of Poly-B on either the Property Disclosure Statement or a Seller’s Disclosure of Material Latent Defect Form, and you or your home inspector finds some, immediately bring the issue to your real estate agent’s attention so they can negotiate a solution and ensure your ability to close the deal.
Selling:
Poly-B can be an expensive problem to fix. If you don’t have the up-front funds for a full plumbing-overhaul, some insurers will accept the bandaid solution of having a professionally installed water mitigation device. The device must be ULC/CSA approved, have a minimum of 4 water sensors, and a water flow device that will automatically shut water off. The device must also either be centrally monitored, or connected to your cellphone with notifications.
You can also pre-emptively ask for Poly-B remediation quotes from various plumbers, and the buyers and their insurer can ultimately decide how to proceed. You will likely have to either lower your asking price, or pay for the work yourself in order to get the property sold.

Hopefully this information helps! If you have any questions about Poly-B piping or real estate in general, feel free to reach out and I’ll do whatever I can to assist.

Burning Questions: How do Wildfires Impact Property Insurance?

Wed, 24 Jul 2024 22:45:00 GMT

Although wildfires are a relatively rare occurrence on Vancouver Island compared to other parts of British Columbia, the recent Grass Lake and Old Man Lake wildfires near Sooke are an excellent reminder of best practices when buying real estate in proximity to an active fire.

As base insurance policies include fire coverage, many insurance providers will not bind (issue) policies on properties within a certain radius (typically 25-50kms) of an active, uncontained wildfire. If you don't have insurance in place prior to your transaction completion date, then your mortgage issuer might not fund your mortgage. Without financing, your deal could collapse, and you might find yourself to be in breach of contract in addition to the forfeiture of your deposit.

The following steps can help to mitigate risk, uncertainty, and stress when hunting for real estate during BC’s wildfire season, and ultimately protect your interests in a transaction.

Talk about it: Prior to your first showing, communicate your concerns and ask your REALTOR® about the potential impact of a wildfire on a transaction, and the best practices for reducing or eliminating these impacts. Addressing your anxieties and having a well-formulated plan from the get-go will allow you to shop with confidence.
Be wildfire aware: If you’re searching for property during wildfire season (from April to October) you should regularly check the BC Wildfire Map for new fires or changes to existing fires in your area.
Include a fire-specific property insurance clause in your offer: A prudent REALTOR® will recommend that you include not only a clause in your offer noting that the offer is subject to the property and buyer qualifying for insurance coverage, but a further clause that allows the buyer to extend the transaction completion date if insurance is unavailable due to a nearby wildfire.
Shop for a quote as soon as possible: Don’t wait until after the subject removal period has lapsed to search for an insurance provider. You want to leave yourself enough time to shop around for the best coverage and rates, and ask your potential provider any questions that you might have. If there isn’t suitable coverage available, you can try to push your closing date, exercise use of the Home Buyer Rescission Period, or decline to remove your ‘subject to insurance’ condition.
Ask potential insurance providers the right questions: Remember—a quote is just an insurance provider's estimate of how much a certain policy will cost, not a guarantee of coverage! When you receive your quote, ask the provider how they handles situations in which a wildfire breaks out prior to closing. Some providers will still bind the policy if there was offer and acceptance of a quote before the wildfire became active, but some providers might pull their offer. You should also ask about deductibles, wildfire versus house fire coverage, mass evacuation coverage, and coverage limits.
Once a policy has been found, lock it in: Time permitting, try to get your insurance in place three to four weeks prior to the deal closing -there is no reason to leave it to the last minute.
Communicate early and often: Although there might not be an active wildfire in the area when you write your offer, that doesn’t mean that one won’t pop up before your deal closes. If a wildfire does break out mid-transaction, get in touch with your agent as soon as possible in case additional steps need to be taken with the seller or any service providers.

Wildfires are an unfortunate fact of life in British Columbia, but they don’t have to get in the way of your property ownership dreams. Working with a knowledgeable, competent agent will ensure that your interests are looked after -regardless of what Mother Nature has in store.

If you have any further insurance or real estate questions or concerns, feel free to call or text 250.888.6440 , or email info@matthewcarsonrealtor.com !