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CHANGES TO BC Residential Tenancy Act ! Victoria Landlords please be aware

WILDFIRES AND INSURANCE: from BCREA

During wildfire season, many insurance providers place restrictions on binding insurance policies on properties within a certain radius—commonly 50 km—of an active and uncontained wildfire. For further information, click here *requires login.

Notes on the amendments to the Residential Tenancy Act and Manufactured Home Park Tenancy Act from BCFSA

From the BC Financial Services Authority:

Licensee Considerations: With the enactment of Bill 14, the landscape of residential tenancies in B.C. is changing significantly. It is important for licensees to familiarize themselves with these amendments to ensure compliance and to effectively advise clients.

Changes already in effect include:

  • Prohibiting personal occupancy evictions in purpose-built rental buildings with five or more units;

  • Increasing the minimum landlord’s occupancy period from six months to 12 months where a tenancy ends for landlord use;

  • Prohibiting rent increases for additional occupants who are minors and making it an offence to do so; and 

  • Prohibiting a landlord from giving frivolous notices to end tenancy. 

Changes effective July 18, 2024 included:

  • Requiring landlords to use the new web portal to generate Notices to End Tenancy for personal occupancy;

  • Increasing the notice period that a landlord must give a tenant for eviction for personal use from two months to four months; and

  • Increasing the tenant dispute period from 15 days to 30 days.

Changes set to come into effect through future regulations include:

  • Prohibiting conversion of rental units to specific non-residential uses, such as short-term rental accommodation or storage;

  • Prescribing increased amounts of compensation for evicting long-term tenants for landlord use;

  • Clarifying the criteria by which a landlord can legally end a tenancy for a problematic tenant; and

  • Increasing administrative penalties for contraventions of the Residential

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Bank of Canada delivers second consecutive rate cut

I wanted to share some important news following the latest decision from the Bank of Canada.

Today, the Bank of Canada announced a 25-basis point cut to the benchmark rate, bringing it down to 4.50%. This is the second rate cut and will further help to ease interest costs for those with variable-rate loans.

In its statement, the Bank said broad price pressures are “continuing to ease” and that inflation is expected to move closer to 2%.

If you're interested in the full details, you can read the Bank of Canada’s full statement here

What happens next?

Lenders usually take a few days to adjust their prime rates in response to the Bank of Canada’s announcement. 

We expect the prime rate, which affects variable-rate mortgages and other loans, to decrease to 6.70% at most major lenders soon. TD Bank, which typically has a slightly higher mortgage prime rate, should see a reduction to 6.85%.

What does this mean for you?

This is great news for those with fixed-payment variable-rate mortgages! You can expect to see a decrease in the portion of your payment that goes towards interest.

If you have an adjustable-rate mortgage, where your payment fluctuates based on prime rate, you will notice a small decrease in your next payment. 

For fixed-rate mortgage borrowers, this rate cut won't change your current term or monthly payments.

Other loans that are priced off prime, such as certain personal loans or lines of credit, will also see a reduction in their interest charged or monthly payments.

Looking ahead

The Bank of Canada’s next rate decision is scheduled for September 4. Whether we see another rate cut will depend on how the economy performs over the next month.

If you have any questions or want to discuss how this change might affect your mortgage strategy, please don't hesitate to reach out. I'm here to help!

Best regards,

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