Why Surrey (Fraser Valley) Works for Investors
- Population growth and new rapid‑transit (Surrey–Langley SkyTrain extension along Fraser Highway) support durable rental demand.
- Broader selection of secondary‑suite homes and townhouse/condo product compared with Vancouver Westside pricing.
- As of late 2022, B.C. removed most strata rental‑restriction bylaws (age‑55+ bylaws can remain). That opens more strata buildings to investors—subject to other rules.
Note: Short‑term rentals (STRs) face provincial and City of Surrey rules, including a principal‑residence requirement and business licensing. Investors targeting STR income should confirm compliance before purchase.
Core Mortgage Rules for Investment Properties (2025)
These are the realities most Surrey investors encounter with mainstream lenders:
- Minimum Down Payment: Expect at least 20% for non‑owner‑occupied 1–4 unit purchases. (Owner‑occupied multi‑unit can differ.)
- Insurance & Amortization: Pure investment purchases are typically uninsured; amortizations up to 30 years may be available on uninsured products at lender discretion, but the federal 30‑year **insured** amortization expansion does not generally apply to rental purchases.
- Rates & Buffers: Investment mortgages often price slightly higher than comparable owner‑occupied terms. Lenders like to see liquidity/contingency after closing.
- Using Rental Income to Qualify: Lenders typically recognize only a portion of expected rent (commonly 50–80%) through offset or add‑back formulas. Exact treatment varies by lender and file.
- Documentation: Market‑rent appraisals or signed leases, proof of down payment, enhanced net‑worth/liquidity, and standard income docs are commonly required.
B.C. Closing Costs That Matter to Investors
Property Transfer Tax (PTT)
1% on the first $200,000, 2% on the amount over $200,000 up to $2,000,000, and 3% over $2,000,000 (higher brackets may apply). First‑time‑buyer PTT relief is not intended for pure investment purchases.
Foreign Buyers
Non‑exempt foreign buyers owe an additional 20% PTT in Metro Vancouver/Fraser Valley; a federal ban on most non‑Canadian purchases is currently extended to January 1, 2027.
GST/PST
Resale housing is generally GST‑exempt. New‑build purchases may attract 5% GST (with possible federal rebates). B.C. PST does not apply to the purchase of residential real property.
Local Compliance Snapshot (Surrey)
- Strata Rentals: Rental‑ban bylaws were removed province‑wide in November 2022; age‑55+ bylaws may remain. Always review current strata minutes/bylaws.
- Short‑Term Rentals: City of Surrey requires a business licence and generally limits STRs to the host’s principal residence, among other conditions.
- Transit & Growth: The Surrey–Langley SkyTrain (Expo Line extension) is under construction and expected to open later this decade, improving connectivity east of King George Station.
Example: Surrey Rental Purchase Math (Illustrative)
- Property price: $800,000 townhouse in Fleetwood
- Down payment (20%): $160,000
- Mortgage (80%): $640,000 (uninsured)
- Assumed rate & amortization: market investor rate, 25–30 years (lender dependent)
- Gross rent: Based on current comps; lender may count only 50–80% for qualification.
- Cash‑flow drivers: Strata fees, property tax, insurance, maintenance, vacancy reserve.
We’ll build a lender‑ready pro forma and stress‑test rates, vacancies, and strata special‑levy risk so you know the real performance range before you waive subjects.
How We Help Investors Win in Surrey
- File Design & Pre‑Approval: We package your income, assets, and rental assumptions to fit lender policy.
- Lender Shopping: We compare banks, credit unions, and monoline lenders for investor‑friendly terms and rental‑income treatment.
- Closing Playbook: Timeline management, appraisal/rent‑opinion coordination, and clear funds‑to‑close.
- Portfolio Strategy: Refinance windows, equity‑take‑outs, and adding properties without over‑leveraging.