Prairie Mountain Properties Ltd.

10/23/2024

Bank of Canada reduces policy rate by 50 basis points to 3¾%.

This means that the prime rate that is used by most lenders for variable or adjusted rate mortgages should drop to 5.95%

The Bank expects inflation to remain close to the target over the projection horizon, with the upward and downward pressures on inflation roughly balancing out. The upward pressure from shelter and other services gradually diminishes, and the downward pressure on inflation recedes as excess supply in the economy is absorbed.

With inflation now back around the 2% target, Governing Council decided to reduce the policy rate by 50 basis points to support economic growth and keep inflation close to the middle of the 1% to 3% range. If the economy evolves broadly in line with our latest forecast, we expect to reduce the policy rate further. However, the timing and pace of further reductions in the policy rate will be guided by incoming information and our assessment of its implications for the inflation outlook. We will take decisions one meeting at a time. The Bank is committed to maintaining price stability for Canadians by keeping inflation close to the 2% target.

The next Bank of Canada announcement is Dec 11, 2024

10/08/2024

HOT, HOT, HOT....OFF THE PRESS! MUST READ FOR REAL ESTATE INVESTORS!!
CMHC Now Insuring up to 4 Units and up to $2M Starting January 15, 2025. Up to 90% LTV and 30 Year Amortization.

The Federal Government of Canada has announced a series of groundbreaking measures aimed at increasing housing supply and affordability across the nation. Central to these initiatives is the focus on unlocking under utilized and vacant land, particularly government-owned properties, for new residential developments.

Additionally, new rules are being implemented to encourage the development of secondary suites on existing residential properties, making use of unused basements, garages, and other spaces. These actions not only aim to create affordable housing options but also reduce urban sprawl by increasing density in established neighborhoods. This strategic approach opens up exciting opportunities for homeowners to increase property values and for real estate professionals to tap into a growing market of clients looking to maximize their investments through these new policies.

The Department of Finance Canada also announced significant changes to mortgage insurance rules. This comes after Septembers announcement of mortgage reforms for first time homebuyers. These changes, slated to take effect on January 15, 2025, are poised to revolutionize how homeowners can leverage their properties, potentially easing the housing crunch and creating new opportunities for real estate agents, mortgage brokers, and property owners alike.

The new mortgage insurance rules will enable homeowners to add more units to their existing properties.

This initiative aligns with recent municipal zoning reforms in Canada's major cities, made possible through Housing Accelerator Fund agreements. These reforms have paved the way for increased density and more flexible use of residential properties.

What's Changing: The New Rules Explained
The core of this policy change revolves around making it easier for homeowners to finance the addition of secondary suites to their properties. Here's what you need to know:

Eligibility:
The new rules apply to all borrowers seeking mortgage insurance to add more units (secondary suites) to their properties. To qualify, borrowers must:
-Already own their properties
-Occupy one of the current units (or have a close relative doing so)
-Intend to construct additional units
-Not use the additional unit(s) for short-term rentals

Refinancing:
- INSURED refinancing will be permitted specifically for the purpose of building additional units.

Legal Requirements:
- New units must be fully self-contained (e.g., basement suites with separate entrances, laneway homes) and comply with municipal zoning regulations.

Property Limits:
- Maximum of four dwelling units per property (including the existing unit)
- The "as improved" value of the property must be less than $2 million.

Financing Terms:
-Loan-to-Value (LTV) ratio: Up to 90% of the property value, including the added value of secondary suite(s)
-Maximum amortization period: 30 years
-Additional financing must not exceed project costs

Effective Date: These new rules will apply to mortgage insurance applications submitted by lenders to insurers on or after January 15, 2025.

To discuss yoru strategy and options Book A Discovery Call: https://calendly.com/keithuthemortgages

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10/05/2024

I was recently asked by to provide my thoughts on 'How Do You Simplify Complex Mortgage Terms for Your Clients?' You can find my contribution to the article in the link below

https://mortgageadvisor.io/qa/how-do-you-simplify-complex-mortgage-terms-for-your-clients/

New Q&A article featuring expert insights on Mortgage Advisor: How Do You Simplify Complex Mortgage Terms for Your Clients?

09/27/2024

Keyspire Investor Summit - Alberta Investment Property Mortgage Specialists

Smith Manoeuvre Book Special $25 (25% discount)
Event Pick-up only Booth 632 - no delivery - ORDER NOW

https://pages.demystifyingmortgages.com/smith-manoeuvre...
We’re proud to be part of the 40th Keyspire Investor Real Estate Resilience Online Summit

09/16/2024

Federal Government Mortgage Announcement today!

The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, today announced a suite of reforms to mortgage rules to make mortgages more affordable for Canadians and put homeownership within reach:

- Increasing the $1 million price cap for insured mortgages to $1.5 million, effective December 15, 2024, to reflect current housing market realities and help more Canadians qualify for a mortgage with a downpayment below 20 per cent. Increasing the insured mortgage cap—which has not been adjusted since 2012—to $1.5 million will help more Canadians buy a home.
- Expanding eligibility for 30 year mortgage amortizations to all first-time homebuyers and to all buyers of new builds, effective December 15, 2024, to reduce the cost of monthly mortgage payments and help more Canadians buy a home. By helping Canadians buy new builds, including condos, the government is announcing yet another measure to incentivize more new housing construction and tackle the housing shortage. This builds on the Budget 2024 commitment, which took effect on August 1, 2024, permitting 30-year mortgage amortizations for first-time homebuyers purchasing new builds, including condos.

09/10/2024

How Can You Restructure Debt to Qualify for a Better Mortgage Rate?

In the quest to secure the most favorable mortgage rates for their clients, I am revealing the strategies that made a difference. These experiences turned homeownership dreams into reality. From consolidating high-interest debt to understanding lender options, these strategies that made a difference.

1. Consolidate High-Interest Debt

When managed effectively, debt restructuring can significantly enhance a client's financial position and open the door to better mortgage options.

2. Implement Strategic Temporary Solutions

We might implement a temporary solution by securing a second mortgage or refinancing with a private or B-lender to pay off the debt. Once the credit bureau updates and the client's credit score improves, we can then move them to a traditional lender where they can access the best rates.

3. Create a Budget Plan

Create a budget that lets you focus on paying down the consolidated loan and managing your other expenses effectively. I also suggest you avoid taking on new debt during this period to stabilize your credit score.

4. Understand Lender Options

Helping clients restructure their debt to qualify for a better mortgage rate requires strategy and an understanding of lender options that create possibilities. Since those lender options also depend on credit score and not just the restructuring of debt, it is not always possible that the client will qualify for a better mortgage rate today; however, what they receive is the possibility to have access to better rates in the future if they manage the restructured debts properly to improve their credit.

For clients with good credit and debt servicing that is too high because of their debt, we need to look at the type of debt and how it is structured. If the debt restructuring is significant enough, it can move the client from needing a B-lender to an A-lender, which is access to better rates.

Restructuring debt is a strategy that we use to save clients thousands of dollars in unnecessary interest being paid to credit card companies at 20-28% interest. It is not always about home equity to do so; however, home equity certainly helps, so we can help you create a future financial life by design rather than by accident.

08/23/2024

I had the opportunity to share my thoughts with on 'How Do You Integrate Mortgage Planning Into a Retirement Strategy?'.

The article was posted on
https://mortgageadvisor.io/qa/how-do-you-integrate-mortgage-planning-into-a-retirement-strategy/

New Q&A article featuring expert insights on Mortgage Advisor: How Do You Integrate Mortgage Planning Into a Retirement Strategy?

08/22/2024

I had the opportunity to share my thoughts with on 'What Advice Would you Give to First-Time Real Estate Investors?'. The article was posted on

https://mortgageadvisor.io/qa/what-advice-would-you-give-to-first-time-real-estate-investors/

New Q&A article featuring expert insights on Mortgage Advisor: What Advice Would You Give to First-Time Real Estate Investors?

07/24/2024

Today's Bank of Canada announcement lowered the prime rate by .25% to 4.5%.

Sometimes being wrong on a prediction is okay. I was wrong on this one, and if it means lower variable rates then wrong is not a bad thing. Maybe next time.

This announcement also caused a drop in the bond market today so we will see if that holds and if lower fixed rates are ahead.

07/08/2024

I hope you're doing well! I'm excited to extend an invitation on behalf of our friends at RPI Education to an upcoming event that's perfect for anyone interested in real estate investing.

Event Details:

Title: Summer Splash - Real Estate Investing Virtual Pool Party
Date: July 11th
Time: 7 PM EST
Duration: 40 minutes
Have you ever considered diving into real estate investing but felt uncertain about where to start? Join our friends at RPI Education for this free, live webinar where they will cover everything you need to know to make a splash in real estate this summer.

What You'll Learn:

Why NOW is the ideal time to invest in real estate.
WHERE the best opportunities for investing are located.
WHAT investment strategies are most effective in today's market.
Whether you're a novice or looking to refine your strategy, this session will provide valuable insights to help you take the next step.

Can't Make It? No worries! Register anyway, and we'll send you the replay afterward so you don't miss out on the valuable information shared.

RSVP Here: https://us02web.zoom.us/webinar/register/WN_hQ4D5IWpSROCc7Ma0JUVqQ

Feel free to pass along this invitation to anyone else who might be interested. We're excited to have you join us for what promises to be an informative and engaging session.

Looking forward to seeing you there!

07/04/2024

“I got an opportunity to share my thoughts on an article about "18 essential tips for first-time homebuyers navigating the mortgage process", thanks to and !

I shared my insights on [Insert quote topic information]

Check out the rest of the article and let me know what you would add in the comments below.

https://azbigmedia.com/real-estate/18-essential-tips-for-first-time-homebuyers-navigating-the-mortgage-process/

We've gathered insights from mortgage brokers and real estate professionals. Here are essential tips for first-time homebuyers navigating the mortgage process

07/03/2024

I was recently quoted in this article: What are examples of successful investment property financing deals? Thanks to Featured and .io

https://mortgagetrends.io/qa/what-are-examples-of-successful-investment-property-financing-deals/