A monthly mortgage for a holiday cottage, bungalow or cottage home can be anywhere from $1,000 to $1.8 million.
The average monthly mortgage on a holiday property is $3,000, according to the B.C. Department of Finance.
While that’s lower than the provincial average of $3.4 million, the average monthly loan is still well above the provincial guideline.
B.D. Howe’s Housing Finance Minister David Trenary said the rate hikes have been too high.
“We’re seeing some of these hikes not only in the province, but across the country,” he said.
“I think this is a sign that we need to take a hard look at the way we pay for things, the way our infrastructure is funded, and we need a broader discussion about how we pay.”
In addition to the increase in mortgage rates, the province is also reducing the eligibility requirements for certain types of homeowners, which is putting more pressure on some low-income families.
Trenery said there’s still room for affordability.
“The province is looking at a number of measures that could address some of the challenges that have arisen with the increasing mortgage rates,” he told CBC News.
“One of the steps that is being taken is reducing the number of different kinds of mortgages that can be used.
This will help to mitigate some of that burden on some of our lower-income communities.”
For example, the provincial government is looking to change the way people qualify for the income-tested Universal Child Care Benefit, which would eliminate a tax credit for people who earn up to $50,000 a year.
The income limit is $23,200.
Trews said the province will also be exploring ways to reduce or eliminate the eligibility requirement for certain low-paid workers.
“The new changes to the Universal Childcare Benefit that we announced today will address those concerns,” he wrote in an email to CBC News, noting that the changes were expected to take effect in 2019.
“We will also explore other ways to better serve low- and middle-income households, and continue to be actively engaged with our local communities.”
Some B.S.H.D.-funded affordable housing projects are also under review, with some developers facing steep increases in rates.
The B.L.A. Housing Board, which provides affordable housing subsidies to low-to-moderate income homeowners in the Greater Vancouver area, said that in the past two years, it has seen its share of properties with a rate of $5,000 or more increase by up to 15 per cent.
The board also warned that developers will face a new and challenging affordability challenge.
“While it is always a challenge to provide affordable housing in this region, the current rate of increase is very concerning,” the board wrote in a statement to CBC Vancouver.
“These increases are being driven by higher prices and higher vacancy rates.”
The BHBA said it is working with developers to reduce their rate increases.
“Our work with developers is to make sure that their rate increase projections are consistent with the current market conditions and that they are based on the most current data available,” said the BHBL spokesperson, Kristine Sargeant.
“This includes the development of more affordable housing units and improving land-use plans.”
However, the BHA said the increasing cost of land in the area means developers are facing an uphill battle.
“Land use planning in the region is one of the key factors driving the price increases,” said Sargeent.
“It is becoming increasingly difficult to build new affordable housing, and the BBL has been working closely with developers and other stakeholders to work to find ways to address this.”
The board has also raised its assessment of the cost of the housing subsidies.
While it was initially set at $3 million, that number is now set at an additional $2 million, meaning that some B.B.C.-area properties are now set to go up in price at an annual rate of between $1 million and $2.5 million.
With files from The Canadian Press