Buyer Protection Plan

Kristy is a Certified Buyer Protection Plan REALTOR®. The Buyer Protection Plan (BPP) has been developed in consultation with Canadian real estate industry leaders.

The Home Buyer Protection Plan

Buying a home is probably the largest investment you will ever make. Like any other big investment decision it comes with risks. The Home Buyer Protection Plan is a solution offered to buyers to help reduce the risks associated with buying a home. The BPP program has two components that help reduce the risk of fluctuations in interest rates and home prices: Home Price Protection and Interest Rate Protection.

Home Price Protection

The Buyer Protection Plan is a managed contract between the home buyer and home seller. The plan allows sellers to offer to sell their home quicker in exchange for the promise to the buyer that if the real estate market should drop one year later then the buyer would receive a rebate. For example, if you buy a Buyer Protection Plan home for $400,000 that comes with a 5% price guarantee, and the market does in fact fall 5% then the buyer receives $20,000.

Interest Rate Protection

After years of historically low interest rates in Canada, mortgage interest rates are expected to rise. Many buyers are concerned about the effects of rising rates on their monthly payments at renewal, when rates will most likely be much higher than they are now. With the Interest Rate Protection program the shock of increased payments on renewal is eliminated. This program can save $10,000 or more on the average mortgage in Canada.

For more information just ask Kristy, or see the Buyer Protection Plan website