Navigating Mortgages with BC’s New Tenant Notice Period: A Guide for Homeowners
Understanding the Impact of BC’s Updated Tenant Eviction Policy on the Real Estate Market in Golden, BC
The BC Government recently updated the tenant eviction notification timelines for personal use, directly impacting the real estate market in Golden, British Columbia. As of July 18, 2024, the notice period for landlords to give notice to end a tenancy, for personal use, fluctuated from 2 months to 4 months. With much controversy and concern, personal use for a purchaser was changed again to finally settle at 3 months notice with a shorter dispute period – this will take effect August 21, 2024. There has been a lot of talk between landlords, Realtors® and Mortgage Brokers, last week I sat down with Jill Holland to discuss the impact this may have on buyers & sellers & their mortgages.
This change is significant for both landlords and tenants, influencing how properties are sold and potentially impacting property values. As your Golden, BC Realtor® I want to keep you informed – here is how it may impact you as a buyer or seller.
What Does This Mean for Home Owners who are Landlords?
Extended Notice Period:
The increased notice period means landlords must plan further ahead when deciding to evict tenants for personal use, such as selling the property or moving in themselves. This can create delays in the selling process and might require more strategic planning.
Impact on Property Value:
The extended notice period could potentially reduce property value, properties with sitting tenants might be less attractive to buyers who want immediate possession.
Implications for Buyers
Buying Tenanted Properties:
For buyers, purchasing a property with sitting tenants now involves a longer wait time before they can take possession. This might deter some buyers or affect their purchasing decisions, especially if they need to move in quickly.
Mortgage Considerations:
The extended eviction notice period for personal use of property, for a purchaser, may impact securing a mortgage. Most mortgage rates are locked in for 90-120 days, which is why the second change to the regulation reflects a 3 month timeline. The original change at 4 months to completion, did not align with standard financing timelines and requirements for insured mortgage options. If you qualify for a mortgage at a specific rate but cannot move into the home within the designated time frame, the mortgage rate may no longer be valid.
This discrepancy might lead to higher costs if the mortgage rate changes before the property can be vacated and sold. I hope this helps you understand the changes and that this knowledge is important for anyone involved in the real estate market in Golden, BC.
Whether you’re buying, selling, or simply observing market trends, as the expert Realtor® here in Golden, British Columbia I can help you stay informed about such policy updates can help you navigate the market more effectively.
