Flexibility, 'We Care' philosophy a welcome addition to BC's marketplace
This article was produced in partnership with Community Trust
Mallory Hendry of Canadian Mortgage Professional sat down with Sarb Uppal, a business development manager in BC, to discuss the marketplace in the province and what value Community Trust is bringing to it.
At a glance, the market in British Columbia is experiencing a similar dynamic to the rest of the country: a climate characterized by rising prices, high demand and incredibly low supply, said Sarb Uppal, a business development manager in BC at Community Trust. But Canada’s second most populous province also has some unique features, he noted, and is benefitting from a current influx of mortgage lenders — led by Community Trust — that are allowing consumers more options.
“This is welcomed by the mortgage broker community that previously had limited options and, in some cases, had different rules than the balance of the country,” Uppal said. “BC has more options than ever today.”
And while Community Trust itself is currently operating with select partners in BC, it is excited about taking this a step further in the coming months by expanding partnerships throughout the province.
The lay of the land
With approximately 5.2 million people calling it home, BC is a diverse market, with most of the population falling into four regions: the Greater Vancouver Market, the Okanagan/Interior Market including Kelowna, Kamloops, Penticton, and Vernon, the Northern British Columbia Market including Prince George, and the Vancouver Island Market.
Penticton, Vernon, and Prince George are listed as the cheapest cities to live in BC. Find out more here.
Construction is one of the largest single sectors of the BC economy, accounting for nearly 10% of the province’s GDP, and, as is the story across all markets, BC is seeing pricing increases: the average residential price in December 2021 rose by 18.7% to $927,877 from $781,572 in December 2020. Due to this historic spike, new legislation is being considered with steps toward implementation, including limitations on “blind bidding” and a new cooling off period.
“Cooling off periods will involve limited periods of time in which buyers can change their minds and cancel the purchase with limited legal consequences,” Uppal said. “BC Financial Services Authority will consult with key industry stakeholders and experts to help determine the parameters of a cooling off period for resale properties and newly built homes and will present advice to the government early this year.”
According to the British Columbia Real Estate Association (BCREA), data from 10 BC real estate boards show record low inventory levels across the province in December 2021. This has led to large demand for housing and higher rents and price points. In 2021, Multiple Listing Service recorded a total of 124,854 residential unit sales, an increase of 32.8% from 2020, and the BCREA reported 12,179 active listings in December 2021, marking a drop of almost 41% from December 2020. In what likely comes as no surprise for anyone who has been in the market for a home as of late, home inventories have fallen in the province for five consecutive months and “that’s only adding more frustration to the house-hunting experience,” Uppal noted.
A flexible alternative
Community Trust entered the BC market at a time when more options were needed, with the outlook that borrowers are diverse and the paths available to get them into a home must reflect that. There are an increasing number of Canadians seeking housing whose situations don’t meet traditional lending guidelines, from self-employed and bruised credit individuals to individuals with unique financial situations, and that’s where Community Trust can make a difference, Uppal said.
“We’re now able to help close the gap for those seeking homes in the West,” he said. “With nationwide rates and Community Trust’s ‘We Care' philosophy, we’ve been a welcome addition to the mortgage marketplace in BC, and we are looking forward to opening this up to everyone across the province in the near future.”
A privately held Canadian company in operation since 1975, Community Trust offers a wide range of financial and trustee services to individuals and corporate entities across Canada.
