When purchasing a new home in British Columbia, buyers gain not only a property but also peace of mind, thanks to the mandatory 2-5-10 Year Home Warranty Insurance. This warranty, introduced under the Homeowner Protection Act, provides comprehensive protection against common defects and structural issues. Here’s a closer look at what it entails.

What is 2-5-10 Year Home Warranty Insurance?

The 2-5-10 Home Warranty Insurance ensures new homes are built to a standard that protects buyers against unforeseen defects. This policy, effective since July 1, 1999, is mandatory for all new homes in BC built with permits issued after this date. Builders must be licensed by BC Housing and the insurance must be provided by approved companies.

Coverage Highlights:

• 2 Years: Labour and materials (some limits apply).

  • 12 months for detached homes and non-common strata property.

  • 15 months for common strata property.

  • 24 months for delivery systems (e.g., electrical, plumbing, HVAC).

• 5 Years: Protection against building envelope failures, including water penetration.

• 10 Years: Coverage for structural defects.

When Does Coverage Begin?

Coverage commencement depends on the type of property:

• Custom Homes: The first date of occupancy or the occupancy permit, whichever comes first.

• Spec Homes: The first date of occupancy or the legal title transfer date.

• Strata Homes:

  • Individual Unit: First occupancy or title transfer date.

  • Common Property: The first unit’s occupancy or the building’s title transfer date.

Why is it Beneficial?

Buying a new home in BC comes with the assurance that your investment is protected against potential risks. From covering major defects to addressing smaller issues like material flaws, this warranty provides financial and emotional relief, ensuring long-term satisfaction.

Are There Any Exclusions?

While extensive, the warranty does not cover:

• Landscaping and non-residential structures.

• Normal wear and tear or material shrinkage.

• Damage from non-residential use or owner’s negligence.

• Acts of nature, such as earthquakes or floods.

To clarify specific scenarios, homeowners can refer to BC Housing’s Residential Construction Performance Guide.

Claim Limits:

• Detached Homes: The lesser of the first owner’s purchase price or $200,000.

• Strata Units: The lesser of the first owner’s purchase price or $100,000.

• Strata Common Property: $100,000 per dwelling or $2.5 million per building.

BC Housing Contact Information for me details:

For full details and guidance, buyers can contact BC Housing’s Licensing & Consumer Services:

• Phone: 604-646-7050

• Toll-Free: 1-800-407-7757

• Email: licensinginfo@bchousing.org

Final Thoughts:

The 2-5-10 Year Home Warranty Insurance is a key advantage of purchasing a new home in BC. It safeguards your property investment and provides a safety net against unexpected issues, ensuring your dream home truly becomes your haven.

Written by Saleem Nashef 
Realtor at Westmont Reality 
+1 778 239 3566
saleem_alnashef@hotmail.com

Reference: BC Housing - Regulatory Bulletin 3: 2-5-10 Home Warranty Insurance

If you’ve been thinking about buying a home in Canada, there’s some big news you need to know. The government has announced new rules that will make homeownership more accessible for many Canadians. Starting December 15th, these changes will reshape how you can approach buying a home—especially if you’ve been struggling with high upfront costs. Here’s a breakdown of what’s changing and how it could impact you.

1. Minimum Down Payment for Properties Under $1.5 Million

The new rules introduce a tiered structure for the minimum down payment for homes priced under $1.5 million:

• 5% of the first $500,000 of the home’s value.

• 10% of the remaining amount between $500,000 and $1.5 million.

For a $1.5 million property, here’s how it breaks down:

• First $500,000: 5% of $500,000 = $25,000

• Remaining $1,000,000: 10% of $1,000,000 = $100,000

• Total Minimum Down Payment: $25,000 + $100,000 = $125,000

This is a significant reduction compared to the previous requirement of 20%, where buyers would have needed $300,000 for the same property. This change makes homeownership much more accessible, especially for first-time buyers.

2. 30-Year Mortgage Terms Now Available

Another exciting change is the introduction of 30-year mortgage terms for borrowers. This extended term allows you to spread your payments over a longer period, reducing monthly payment amounts. While it means paying more interest over time, it provides much-needed flexibility for families working to balance their budgets.

3. Why Is This Important?

These changes are part of the government’s efforts to make housing more accessible. With property prices in Canada still high, especially in major cities, these adjustments enable more people to enter the housing market without the burden of saving for years for a larger deposit.

Whether you’re a first-time homebuyer or someone looking to upgrade, these reforms create significant opportunities to make your dream of homeownership a reality.

4. New Monthly Payment Estimates with Mortgage Insurance

Let’s explore how different interest rates impact your monthly payments, assuming a 30-year mortgage term and factoring in mortgage insurance:

5. What Happens After December 15th?

If you’re planning to buy a home in Canada, now is the time to act! After December 15th, the new deposit and mortgage rules will come into effect, allowing you to take advantage of lower upfront costs and extended mortgage terms.

If you’ve been holding back due to high upfront costs, this could be the opportunity you’ve been waiting for. Lower deposit requirements and more flexible payment options make homeownership within reach sooner than you think.

Disclaimer: The above calculations are estimates and include assumptions about mortgage insurance and interest rates. Actual rates and payments may vary depending on individual circumstances and lender conditions. Always consult a mortgage professional for precise and personalized advice.

Brand New Studio as Low as $294,000 – Ready Late 2027

Net Yearly Income Based on Rental Income Ranges: $1,700 per Month

Estimated Net Yearly Income (Example month rent for new Stuido: $1,700/month)
This post provides an estimate of the potential net yearly income from renting out a studio apartment in Abbotsford, based on varying interest rates and rental income ranges. Please note that all these figures are estimates, and the actual performance may vary depending on a range of factors, including changes in interest rates, rental demand, property tax rates, and other variables.

Property Overview

• Price: $294,000

• Size: 402 sq. ft.

• Deposit:

  • 5% due 7 days after acceptance or at subject removal: $14,700

  • 5% due 60 days after acceptance: $14,700

  • Total Deposit: $29,400 (10% of the purchase price)

• Estimated Completion: Late Summer 2027

• Strata Fee: $0.49 per sq. ft. per month (for a 402 sq. ft. studio, this equals $196.98/month)

GST and Mortgage Calculation

5% GST:

• GST Applied to the Purchase Price: $294,000 × 0.05 = $14,700

• Total Price (Including GST): $294,000 + $14,700 = $308,700

Adjusted Loan Amount

• Total Price Including GST: $308,700

• 10% Deposit: $30,870

• Loan Amount: $308,700 - $30,870 = $277,830

Mortgage Insurance

If your down payment is less than 20%, mortgage insurance is required. Since the deposit here is 10%, mortgage insurance will apply.

• Mortgage Insurance (2.8%): $277,830 × 0.028 = $7,779.24

• New Mortgage Amount (Including Insurance): $277,830 + $7,779.24 = $285,609.24

Mortgage Payment Calculation

We’ll calculate the mortgage payment based on three different interest rates: 3%, 2.5%, and 2%. The loan amount is $277,830, with a 25-year amortization period.

Mortgage Payment Table

Here is the mortgage payment table for a 30-year amortization period, with the same loan amount of $277,830 and interest rates of 3%, 2.5%, and 2%:

Additional Monthly Costs

• Property Taxes: Estimated at $1,090/year, or $90.83/month

• Home Insurance: Estimated at $50/month

• Strata Fees: $196.98/month

Mortgage Payment Details with Net Monthly Income and Net Yearly Income

This table will show net profit if you were to rent a brand new Studio for $1700 per month

Disclaimer:

These numbers are estimates and should be considered as a general guide only. They are based on a variety of assumptions such as interest rates, loan amounts, rental rates, and taxes, which can fluctuate over time. The actual figures may vary due to market conditions, changes in property taxes, strata fees, insurance premiums, and interest rates.

Why Invest in This Studio?

1. Prime Location: Located just 12 minutes from UFV, this studio is ideal for students and faculty members looking for convenient, affordable housing.

2. Affordable Entry Point: With a 10% deposit and manageable monthly payments, this property is an excellent opportunity for new investors or those looking to diversify their portfolios.

3. Long-Term Growth: Abbotsford is a growing city with strong potential for property value appreciation, making it a promising investment for long-term growth.
   

Secure Your Dream Home on a 124-Year Lease in Iron Horse community, with our last remaining three-time award-winning Rooftop Rowhome. At an unbeatable price of $779,900, it's the best value yet!

Why choose this home?

• Expansive Rooftop Patio: Enjoy over 600 sq. ft. of outdoor space, perfect for hosting BBQs, stargazing, or unwinding under the open sky.

• Open-Concept Design: Thoughtfully designed layout flows seamlessly between the dining and living spaces.

• Master-Planned Community: Located within our sought-after community, celebrated for its modern farmhouse charm and thoughtful design.

At this new unbeatable price of $779,900, this is your last opportunity to secure an award-winning home in all of Iron Horse. Your rooftop oasis is waiting, but not for long.

Save $8,000 to $14,000 in upgrades or save on your purchase price!

2.99% Fixed Interest Rate For a 3-year term on approved credit.

Offered for a limited time.

Lot 169 – 4 Bed 3.5 bath 1981 sq ft 2 Car Garage + Driveway
Move-In Ready! Dark Colour Scheme Finished Rec Room Included

46211 Promontory Road, Chilliwack, British Columbia, V2R 0M2, Canada

Leasehold 124 years