Leasehold Mortgages in BC: Which Lenders Will Finance Leased Land?

Buying a leasehold property in BC comes with unique challenges. Unlike freehold ownership, leasehold land means you’re essentially buying the right to occupy for a set number of years. This creates extra risk for lenders, and not every bank is comfortable with it.

If you’re looking at a mortgage on leased land — whether it’s First Nations leasehold financing, university leaseholds (UBC, SFU), or government prepaid leaseholds — it’s crucial to know which lenders in BC will fund your purchase, and under what conditions.

Here’s a general guide to the major lenders and their leasehold mortgage policies in BC.

BlueShore Financial

• Only finances government prepaid leaseholds

• Purchases only, owner-occupied

• No high-ratio mortgages. Ie: not 5% down.

• Max 75% LTV, cap $750,000

• 25-year amortization with a 10-year buffer required
  

Coast Capital Savings

• Accepts prepaid leaseholds (property must be on their approved list)

• Owner-occupied only

• Lease must extend 5+ years beyond amortization (max 30 years)

• Max 80% LTV on first $1M, 65% beyond

• No HELOCs, no mobiles/manufactured

• Can be conventional or insured (CMHC/Sagen)
  

CTBC Bank

• Finances government leased land at UBC/SFU

• Amortization must be 10 years less than remaining lease term
  

Envision Financial / First West

• Will finance leasehold properties

• Terms depend on the lease and property type

• Must confirm details with a Management — approvals are case-by-case
  

Island Savings

• Accepts leasehold mortgages

• Conditions vary depending on the lease

• Must confirm details with a BDM — also case-by-case
  

Haventree Bank

• Limited to Vancouver university leaseholds only
  

Prospera Credit Union

• Allows owner-occupied and rental/investment properties on leased land

• Eligible lessors: municipal governments, UBC, SFU, or First Nations

• Max 75% LTV on first $1M, 50% above

• First Nations owner-occupied: up to 80% on first $1M

• New members limited to insured mortgages only
  

Scotiabank – First Nations Leasehold Land Mortgage Program

• Designed for First Nations leasehold financing in BC

• Eligible: purchases, refinances, switches (must be solicitor-facilitated)

• Must have 30+ years remaining on sublease

• Eligible properties: principal or vacation homes

• Appraisal: CMHC insured or full appraisal if uninsured

• Approved developments include:

  • Sun Rivers & Talasa (Kamloops)

  • Sonoma Pines & Parker’s Cove (Okanagan)

  • Musqueam Reserve (Vancouver)

  • Tsawwassen Shores

  • Tzeachten First Nations (Chilliwack)
    

Shinhan Bank

• Considers leasehold mortgages on a case-by-case basis
  

Strive

• Accepts government, Native, and private leaseholds if insured/insurable

• Lease must be:

  • Fixed and assignable

  • Extend 5+ years beyond amortization

  • Convertible to freehold in case of default

• Head lease and sublease required

• 1–2 unit properties on permanent foundations only

• Not eligible: mobile or modular homes

• OTHER LENDERS: HSBC and BMO.
  

Why Leasehold Mortgages Need Expert Help

Leasehold mortgages in BC are not one-size-fits-all. Each lender has unique rules about lease term length, property type, and maximum loan-to-value. Many also require extra documentation such as head leases, subleases, or appraisals from approved appraisers.

✅ Work With a Specialist like Kiki!

All leasehold and leased land mortgage files need extra handholding. From additional documentation to stricter lender requirements, these deals can get complex fast. At Blue Butterfly Mortgages, I specialize in alternative financing and complex mortgage files, including First Nations leasehold financing, leasehold property mortgages in BC, and university leasehold properties.

📅 Book a Consult

Leasehold and leased-land mortgage files always require extra handholding 🤝. Let’s walk through your lease, lender options, and next steps together.

👉 Schedule a meeting with me on Calendly for a one-on-one consultation. ✨

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