Canada is planning to increase the maximum that can be borrowed on a high ratio mortgage.

High ratio mortgages are those where the buyer puts down less than 20% on the purchase price.

If the proposed changes go through, this will increase by 25% from $1 million to $1.25 million.

While this may sound beneficial to the average home buyer, particularly in the Greater Victoria area where home prices over $1 million dollars are more common than not, for buyers to take advantage of this increase they would need a household income of at least $155,000 per year and a minimum down payment of $250,000.

Furthermore, when the government is offering up to 25% more funds, the seller is now obligated to extract these additional funds. The increased credit gets capitalized into the home price and, in turn, pushes prices even higher.

A large portion of home buyers are first-time home buyers and this will affect them negatively as it pushes the cost of affordable housing up. 

Housing affordability is already out of reach for many homebuyers, particularly first-time buyers, in Canada and this increased borrowing may not work in our favour. 

You can learn more about this proposed increase at: https://betterdwelling.com/canada-plans-to-foster-its-real-estate-bubble-by-raising-the-maximum-mortgage-size/?utm_source=Better+Dwelling+Website+Signup&utm_campaign=f1bc874b58-fras_jan_112018-3094981_COPY_01&utm_medium=email&utm_term=0_bde8feedee-f1bc874b58-309114821

This is the final part of our series covering the last 5 municipalities, including the Capital City.

Esquimalt

Esquimalt, home to Canada’s naval presence on the West Coast, is within walking distance to the City of Victoria and is centrally located in the Greater Victoria area. 

Visit local restaurants and cafés, peruse art galleries and unique shops, and sip from breweries that all call this fantastic municipality home.

Stunning seafronts, incomparable parks, urban-design waterways, and down-to-earth friendly residents welcome you to Esquimalt - rich in history but contemporary in outlook. 

Victoria - The Capital City

Victoria, the Capital City of British Columbia, is home to a dynamic, thriving economy and vibrant arts and culture scene, with an unparalleled natural environment enjoyed by residents and visitors.

Victoria has a wealth of natural and man-made riches, including stunning heritage architecture, ocean views, and mountain vistas. It is this rare juxtaposition of heritage charm, scenic backdrop, and modern city-scape that makes Victoria one of the most uniquely special places in Canada. Millions visit our city every year and enjoy the natural beauty, temperate climate, and heritage charm Victoria offers its citizens every day.

Home to the historic Fairmont Empress Hotel, The Legislative Building, Craigdarroch Castle, Beacon Hill Park, and countless attractions, this city has everything you could want, and much, much more. 

Oak Bay

Oak Bay is a picturesque suburban community located on the southern tip of Vancouver Island, bordering the City of Victoria.

Affluent Oak Bay is popular for its tree-lined namesake avenue, filled with smart boutiques and art galleries, fancy delis, and lively cafes. Casual spots for serving brunch and fish & chips, along with upscale wine bars and friendly neighbourhood pubs.

Home to the Oak Bay Marina, you’ll find excellent sights, eats, and even opportunities to feed the local seals here.

Oak Bay is also home to the Uplands golf course, the Oak Bay Beach Hotel, and the ritzy uplands neighbourhood where you’ll spot everything from century-old character homes to modern mansions. 

Sooke

Sooke is located on the southern tip of Vancouver Island, just 38 kilometres from Victoria.

The Town’s motto of “Where the Rainforest Meets the Sea” speaks to the environmental riches of the area. Here you will find stunning west coast sights through the various local, regional, and provincial parks

The area is famous for its access to the amazing west coast of Canada including countless beaches, the West Coast Trail, Juan De Fuca Marine Trail, Botanical Beach, Avatar Grove, and countless attractions that only this area can offer. 

Metchosin

Metchosin is a rural community of wide-open spaces, pastoral countryside, and bountiful farmlands.

In this area, you will see cultivated acreages, small forests, rocky headlands, small farms, and secluded seaside homes. The area is home to numerous parks, trails, beaches, and a wildlife sanctuary.

Driving through Metchosin you’ll find countless street-side farm stands selling fruit and vegetables that were cultivated right here.

The municipality of Metchosin has imposed a minimum one and two-acre lot size bylaw to preserve the area’s rural lifestyle. If you’re looking for a slower pace of life surrounded by nature, this is definitely the area for you! 

We hope this series has helped you to understand the Greater Victoria area and will help you in selecting a neighbourhood for your next home.