20 Changes to Real Estate in 10 Years

Over the past decade, the landscape of real estate transactions in British Columbia has shifted dramatically due to new policies, mortgage rules, and taxation measures. These changes have had a significant impact on homebuyers, investors, and homeowners alike. Here’s a look at 20 key changes that have shaped the market:

Mortgage and Lending Rules

1. 2010: 20% down payment required for rental properties.
2. 2011: Maximum amortization period for insured mortgages reduced from 35 to 30 years.
3. 2012: 20% down payment mandated for properties over $1 million.
4. 2012: Maximum amortization period further reduced to 25 years.
5. 2016: 10% minimum down payment required for the portion of home prices between $500,000 and $1 million.
6. 2016: Insured mortgages must qualify at the posted 5-year mortgage rate.
7. 2018: OSFI B20 stress test introduced, requiring uninsured borrowers to qualify at higher rates.
8. 2021: Minimum qualifying rate for uninsured mortgages increased to 5.25%.

Taxation Policies

1. 2016: BC Foreign Buyers Tax introduced.
2. 2016: Capital Gains Exemption eliminated for non-residents.
3. 2017: City of Vancouver introduced a 1% tax on vacant homes.
4. 2018: BC Speculation and Vacancy Tax (SVT) implemented.
5. 2018: BC Foreign Buyers Tax increased and expanded beyond Metro Vancouver.
6. 2019: School Tax applied to high-valued properties.
7. 2021: Underused Housing Tax introduced.
8. 2023: Federal Anti-Flipping Tax implemented.
9. 2023: Nationwide Foreign Buyer Ban enacted.
10. 2025: Provincial Flipping Tax set to take effect.
11. 2025?: Proposal to double the BC Speculation and Vacancy Tax.

The Impact on Buyers and Sellers

These policies have significantly reshaped the market, affecting affordability, investment strategies, and overall real estate activity. While some measures aim to curb speculation and improve housing accessibility, others have placed additional burdens on buyers and sellers, requiring more stringent qualifications and higher costs.