Sarah A. Colucci, York Region's Mortgage Expert. Savings Guaranteed.
  • Home
  • WHY USE SARAH FOR YOUR NEXT MORTGAGE
  • APPLY ONLINE
  • PRODUCTS
    • Free House Value Tracker Report
    • CASH-BACK MORTGAGE
    • BRIDGE FUNDS
    • REVERSE MORTGAGES
    • SELF-EMPLOYED MORTGAGES
    • FIRST-TIME HOME BUYER PRE-APPROVALS >
      • FIRST-TIME HOME BUYER TAX CREDIT
    • MORTGAGE REFINANCE >
      • Prepayment penalties
    • SPOUSAL BUYOUTS
    • INVESTMENT PROPERTIES AND RENTALS
    • BRUISED CREDIT
    • PRE-APPROVALS
    • NEWCOMERS
    • DEBT CONSOLIDATION
    • HOME EQUITY LINE OF CREDIT
    • PURCHASE PLUS IMPROVEMENT PROGRAM
    • WHY INVEST IN REAL ESTATE
    • MORTGAGE RENEWALS >
      • New Mortgage Rules and Mortgage Renewals
    • SECOND MORTGAGE LOANS
    • LESS THAN 20% PROPERTIES
    • DOWN PAYMENT
  • CONTACT ME
  • PRIME RATE CANADA
  • CLOSING COSTS
  • DOCUMENTS REQUIRED FOR MORTGAGE FINANCING
  • MORTGAGE DICTIONARY
  • MORTGAGE NEWS
  • GOVERNMENT MORTGAGE RULES
  • MORTGAGE TIPS
  • HOUSE HUNTING CHECKLIST
  • APPRAISALS
  • FIXED OR VARIABLE RATE?

Sarah Colucci's Mortgage Blog

Stay enlightened about mortgage & real estate news in Canada.
Mortgage News 2022

The Province of BC will allow homebuyers to withdraw their offer during the cooling off period without any legal consequences

12/3/2021

0 Comments

 
Picture
The B.C. Government plans to take steps to cool the real estate market by establishing a “cooling off” period where homebuyers could withdraw their offer to purchase without any legal consequences. These new rules would apply to both resale homes and new construction. 

According to B.C.’s Minister of Finance, home purchasers should be protected when making financial decisions that involve their lives.  The government hopes this plan will eventually cool down the market while bringing additional measures and safeguards. 

On August 1, 2021, the B.C. Financial Services Authority became the only regulator for all financial services in consultation with stakeholders and other industry experts. Their discussion pertains to how the blind bidding and pressure to purchase without conditions put people at risk of default. 

Much like Toronto, Vancouver’s average house price currently sits at $1.2 Million, which is approximately 15% higher than it was last year, according to data compiled by MLS. 

The government also expressed concern over pent-up demand, which happens when the ending of lockdowns and restrictions force a sudden surge in buying and selling activity, driving up the cost of real estate.

Further information about the new measures will be announced this month.

The main concern with Government intervention that seeks to nullify offers to purchase by implementing a cooling-off period regardless of whether the offer is firm (meaning no conditions), is that it may cause excessive volatility in the market and eventually lead to chaos among sellers and buyers. Although, in theory, it will protect buyers with a longer cooling-off period, it may allow purchasers to back out of legitimate contracts without any consequence, which is unfair to people selling their property. 

Some claim the Government is taking their policies too far and that current contract law should be respected. If a purchaser is concerned about financing, for example, they can put a financing condition in place that protects them from losing their deposit or facing legal consequences if their financing doesn't come through. Of course, sellers don't have to accept an offer with conditions, which ends up limiting how many people can safely and successfully purchase property, and giving investors or others who are not concerned about financing an unfair advantage. 

I will comment on the policy when the terms are made fully available. 

RSS Feed

Sarah Colucci

Sarah Colucci is a seasoned mortgage professional working with Mortgage Edge, Canada's largest independent broker house.

0 Comments



Leave a Reply.

    Picture

    By: Sarah Colucci

    Senior Mortgage Agent, Lic. M14000929

    Archives

    January 2023
    October 2022
    September 2022
    July 2022
    June 2022
    May 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    August 2021
    July 2021
    June 2021
    May 2021
    February 2021
    December 2020
    November 2020
    October 2020
    September 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    February 2019
    January 2019
    December 2018
    August 2018
    May 2018
    April 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017

    Categories

    All

    RSS Feed

GET IN TOUCH WITH US

Let's get started today.



Address

411 Queen St. 
Newmarket, ON
​L3Y 2G9

Sarah A. Colucci, Mortgage Agent Lic. M14000929
Sherwood Mortgage Group
Licence # 12176

Telephone

Direct: 647-773-4849
​
Email: scolucci@sherwoodmortgagegroup.com
Picture
  • Home
  • WHY USE SARAH FOR YOUR NEXT MORTGAGE
  • APPLY ONLINE
  • PRODUCTS
    • Free House Value Tracker Report
    • CASH-BACK MORTGAGE
    • BRIDGE FUNDS
    • REVERSE MORTGAGES
    • SELF-EMPLOYED MORTGAGES
    • FIRST-TIME HOME BUYER PRE-APPROVALS >
      • FIRST-TIME HOME BUYER TAX CREDIT
    • MORTGAGE REFINANCE >
      • Prepayment penalties
    • SPOUSAL BUYOUTS
    • INVESTMENT PROPERTIES AND RENTALS
    • BRUISED CREDIT
    • PRE-APPROVALS
    • NEWCOMERS
    • DEBT CONSOLIDATION
    • HOME EQUITY LINE OF CREDIT
    • PURCHASE PLUS IMPROVEMENT PROGRAM
    • WHY INVEST IN REAL ESTATE
    • MORTGAGE RENEWALS >
      • New Mortgage Rules and Mortgage Renewals
    • SECOND MORTGAGE LOANS
    • LESS THAN 20% PROPERTIES
    • DOWN PAYMENT
  • CONTACT ME
  • PRIME RATE CANADA
  • CLOSING COSTS
  • DOCUMENTS REQUIRED FOR MORTGAGE FINANCING
  • MORTGAGE DICTIONARY
  • MORTGAGE NEWS
  • GOVERNMENT MORTGAGE RULES
  • MORTGAGE TIPS
  • HOUSE HUNTING CHECKLIST
  • APPRAISALS
  • FIXED OR VARIABLE RATE?