BC Development Fee Deferrals: What New Rules Mean for Shuswap Homebuyers

By Leanne Mollica, Mortgage Broker — My Mortgage Strategy (Salmon Arm, BC)

British Columbia has announced a major policy shift designed to support developers and improve housing availability across the province. Starting next year, builders will be allowed to defer up to 75% of development cost charges for as long as four years or until the home is ready for occupancy. These fees traditionally cover infrastructure like roads, water lines, sewer systems, and community amenities that support growing neighbourhoods. Under the current system, builders must pay these costs upfront, which often slows construction, affects cash flow, and can contribute to higher home prices. Allowing deferral gives developers additional flexibility during construction and may help increase the number of projects that move forward. For buyers in Salmon Arm and the Shuswap, this policy change could have meaningful long-term benefits. Reduced upfront expenses for builders may help stabilize pricing, increase available inventory, and improve the feasibility of new developments throughout communities such as Canoe, Blind Bay, Sorrento, and Enderby. It could also create more opportunities for incentives or buyer upgrades as developers gain breathing room in their budgets. For anyone considering a pre-sale purchase or building a custom home, early mortgage planning is essential. Construction financing involves unique approval requirements, staged funding, and a detailed review of budgets, timelines, and builder qualifications. Even if development charges are deferred at the builder level, buyers still need a clear financing strategy that accounts for land costs, build timelines, interest-only stages, contingency funds, and final take-out mortgage qualification. Connecting early allows us to review construction mortgage products, pre-approval requirements, and lender guidelines so buyers can confidently navigate the process. Whether you’re exploring a lot in the Shuswap, considering a pre-construction purchase, or planning a custom build, understanding how these new rules affect project timelines and pricing can help you make smarter decisions and secure the right mortgage fit.

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