Understanding Down Payments and Mortgage Trends in Alberta

This document provides an overview of the down payment requirements for mortgages in Alberta, current mortgage rate trends, average monthly payments, and recent changes in mortgage regulations. Whether you're a first-time homebuyer or looking to refinance, this guide will help you navigate the mortgage landscape in Alberta.

How Much Do You Need for a Down Payment on a Mortgage in Alberta?

If you're house-hunting in Alberta, you’ll need 5% down for homes up to $500,000. For homes priced between $500,000 and $1.5 million, the requirement is 5% on the first half a million and 10% on the remaining amount. Thanks to recent reforms, the insured mortgage cap has been raised to $1.5 million—finally, something going up that isn't your property taxes!

Are Mortgage Rates Going Down in Alberta in 2024?

Good news for homeowners: rates are expected to start a slow decline through 2025. The 5-year fixed mortgage rate is currently hovering around 4.5%, and by September 2025, it’s forecasted to drop to the 3.75% - 4.25% range. Think of it as a gentle glide rather than a nosedive—just enough to make you breathe easier (but not enough to cancel your Netflix subscription).

What Is the Average Monthly Mortgage Payment in Alberta?

In Calgary, the average monthly mortgage payment has climbed faster than your kids after a sugar rush—from $1,967 in 2013 to $3,317 in 2023. Blame inflation, rising home prices, and maybe the neighbors who keep flipping houses for profit.

New CMHC Rules: Higher Insured Cap and 30-Year Amortizations

Big changes have arrived! The 2024 mortgage reforms now allow first-time buyers to stretch their payments over 30 years, and the insured mortgage cap has been raised to $1.5 million. This means you can breathe easier (and pay a little longer). Just think of it as a marathon, not a sprint—because who wants to sprint, anyway?

For expert advice on mortgages (and maybe a dad joke or two), reach out to Michael Richmond at [www.michaelrichmond.ca](http://www.michaelrichmond.ca). Because when it comes to home loans, you need someone who’s serious… but not too serious! Call or text 403-807-8779.

The Power of Perspective: A Lesson from the Road and Your Mortgage

The Power of Perspective: A Lesson from the Road and Your Mortgage

This morning, on my way to work, I found myself stuck behind a driver creeping along at 25 km/h in a 60 zone. For a good 1,000 meters, I patiently followed, frustration building with each slow second. I assumed the driver was oblivious to the growing line of cars behind her, unaware of the irritation she was causing. But then, just as I was about to lose hope, she pulled over and let me pass.

In that moment, my perspective shifted. It wasn’t that she didn’t care about the drivers behind her; she simply hadn’t had the chance to pull over earlier. My assumption—that she was completely unaware—was wrong. This experience got me thinking about how our perspectives shape our reactions to the world around us, especially when it comes to major decisions like buying a home.

The Power of Perspective

Everyone, including you, has a perspective on every single topic under the sun. Your perspective is shaped by your life experiences, your upbringing, and your beliefs. Because of that, your perspective feels absolutely correct—unchangeable, even. But what happens when someone else’s perspective clashes with yours? Do you take a step back to consider where they’re coming from, or do you dig in, convinced that your view is the only valid one?

One of the greatest frustrations in life is encountering people who refuse to see another perspective or take the time to educate themselves to ensure that what they believe is truly accurate. It’s easy to get stuck in our own bubbles, where our views are constantly reinforced by like-minded people, but stepping outside that comfort zone is where real growth happens.

A Call for Open-Mindedness

I’ve never been the type to get mad easily. But I’ll admit, there’s one thing that makes me flinch, cringe, or even spew coffee out of my mouth mid-sip: seeing people brag about or take pride in their ignorance. It’s the little things that get under my skin—like when someone dismisses an entire topic without understanding the nuances or when they stubbornly cling to outdated ideas because it’s easier than challenging their own beliefs.

What if we all took a moment to consider another perspective? To ask ourselves, “What am I missing? What could I learn if I opened my mind a little wider?” The driver I encountered this morning might have been going slow for a reason I couldn’t see—maybe she was lost, maybe there was an issue with her car, or maybe she was just trying to be cautious. Whatever the case, her actions weren’t about me, and my frustration melted away as soon as I realized that.

The Little Things Matter in Your Mortgage, Too

Life is full of moments where we have a choice: to get frustrated and stay stuck in our own perspective or to step back and see the bigger picture. The next time you find yourself getting annoyed—whether on the road or with a financial decision like your mortgage—pause and ask yourself, “What’s another perspective here? What might I be missing?”

This same approach applies when considering your mortgage options. Many homeowners stick with the status quo, renewing with the same lender year after year without considering if they could get a better deal elsewhere. They might assume that the process is too complicated or that their current lender is giving them the best rate simply because of their loyalty.

A Mortgage Perspective Shift

Just like with that slow driver, it’s worth considering another perspective when it comes to your mortgage. Have you explored what other lenders are offering? Have you spoken with an independent mortgage broker who can provide you with a broader view of the options available?

By opening yourself up to a different perspective, you could find a mortgage that saves you thousands over the life of your loan. Maybe you’ve been so focused on paying off your mortgage quickly that you haven’t considered other strategies that might offer more financial flexibility. Or perhaps you’re locked into a rate that could be improved if you simply asked the right questions.

A Challenge for You

Today, I challenge you to step outside your perspective—whether it’s in your daily interactions or in how you approach your mortgage. Take a moment to explore what other options are out there. You might be surprised at what you discover and at how much you could save in the long run.

Your mortgage is one of the most significant financial commitments you’ll ever make. Don’t let a narrow perspective keep you from making the most of it.

Need Help?

As an Independent Mortgage Broker and team leader, I’m here to help you navigate the complexities of your mortgage with a fresh perspective. Whether you’re renewing, refinancing, or buying your first home, let’s explore all the options together.

Call or text me—I’m here to help you find the best path forward.

403-807-8779

By: Michael Richmond

The Price of a Lie: Why Honesty is Crucial in the Mortgage Process

The Price of a Lie: Why Honesty is Crucial in the Mortgage Process

Anytime you lie, and get caught, the first instinct might be to cover it up with more lies. But let me tell you, that’s when things start to spiral out of control.

Let me share a recent event where a lie caused more trouble than it was worth.

A deal came across my desk from one of the top Realtors in Calgary. At first glance, it seemed like any other: a straightforward referral, a motivated client, and a promising property search ahead. We began the pre-approval process, gathering all the necessary documents with one exception. The client assured me that this missing piece—a down payment proof—wasn't an issue. He claimed it was tied up in an investment and couldn’t be printed right away. He pushed me to condition the pre-approval on receiving this document later.

I don’t usually work that way. I believe in doing things right from the start—no exceptions. I don’t want to waste anyone’s time, including the Realtor’s, the client’s, or my own. But the client insisted, so I bent a little, conditioning the pre-approval on further verification of this “guaranteed” down payment. With the pre-approval in hand, the house hunting began. Months later, they found a place that matched the approval limit.

Tip of Wisdom #1:
Before you even start the home-buying process, have a realistic expectation of your budget and the market. Don’t waste time looking at million-dollar properties if your budget is half that.

Now, where’s the drama and the lie that derailed everything? Let’s fast forward.

The property was found, an offer was made, and the deal was approved with standard conditions. But as soon as we reached the stage of verifying those conditions, the story started changing—again and again. The down payment narrative shifted from personal savings to a gift, then to a gift from out of the country, and eventually to a complex web of transactions involving brothers, sisters, cousins, and parents. Over 10 different transactions had occurred, most within the last 30 days, making it difficult to trace the money’s origin. The funds had moved around so much that it raised every red flag imaginable.

Tip of Wisdom #2:
When the time comes to waive the financing condition, and you don’t have a written thumbs-up from your Mortgage Advisor confirming all conditions have been met—DON’T WAIVE. Back out, get your deposit back, and regroup. It’s better to solve the issue now than face rejection later. Maybe find a new property with lower taxes, lower condo fees, or simply wait until the funds have been in your account long enough to avoid raising suspicion.

If you’re sitting with your Realtor, debating whether to waive, walk away, or ask for an extension, a lot might cross your mind. Once you’re invested in a lie to get the deal done, backing down becomes much harder. Pride might push you to move forward, even when common sense tells you to walk away. But if you’d been honest from the start, we could’ve addressed the issues and set up a solid plan without resorting to leaving your family in a tight spot.

Numbers don’t lie.
Sure, I can make them dance, but they don’t lie.

Think of your mortgage advisor as your lawyer—we’re on your side, working to get you the best possible outcome. Would you lie to your lawyer? Of course not. We work for you, and our job is to present you in the best light possible, to secure the perfect mortgage with the best rates and terms tailored to your needs. We navigate this process daily, often beyond full-time hours.

Word to the Wise:
If you’re on EI and working under the table, I’m not here to throw you under the bus. But I will help you find a path that gives you a better chance of owning a home.

Call me, and let’s figure out a plan together.
403-807-8779

By: Michael Richmond

Lead Mortgage Planner

Should we get a co-signer for the mortgage?

The Secret Weapon for First-Time Homebuyers: The Power of a Co-Signer

On my way to the office in Calgary this morning, I was thinking about all the different ways people achieve their dreams—especially the dream of owning a home. For many first-time buyers, the path to homeownership can feel like trying to climb Mount Everest with a backpack full of rocks. But what if I told you there’s a secret weapon that could lighten that load and help you reach the summit faster? That secret weapon is a co-signer.

Now, before you roll your eyes and think, “Isn’t that just something desperate people do?”—let me stop you right there. Getting a co-signer isn’t about desperation; it’s about strategy. It’s about using every tool at your disposal to make your dream of owning a home a reality, and sometimes, that means bringing in a little backup.

Why Consider a Co-Signer?

Here’s the thing: banks and lenders love numbers. They look at your income, credit score, debt load, and more. If the numbers don’t add up just right, they might say, “Sorry, but no.” Or, they’ll approve you for a mortgage, but at a lower amount than you need to buy the home you want. This is where a co-signer can make all the difference.

A co-signer, usually a parent or close family member, essentially “lends” you their financial credibility. By adding their income and strong credit history to your application, you become a much more attractive borrower in the eyes of the bank. Suddenly, those numbers that weren’t quite adding up before look a lot better.

Unlock a Better Purchase Price

Here’s another perk: with a co-signer, you’re likely to qualify for a larger mortgage. This could mean the difference between settling for a home that’s just okay and buying the home you’ve always dreamed of. In a competitive market like Calgary’s, where property prices can fluctuate rapidly, having that extra buying power can be the key to landing your ideal home instead of watching it slip away to someone else.

Making Dreams Come True

Let’s face it—homeownership isn’t just about having a place to live; it’s about stability, security, and the pride of owning something that’s truly yours. It’s about building a future. And sometimes, to make that future a reality, we need a little help. There’s no shame in that. In fact, it’s smart. Think of your co-signer as your financial wingman (or wingwoman), helping you navigate the sometimes treacherous waters of mortgage approval.

But What’s in it for the Co-Signer?

This is a question I hear a lot, and it’s a valid one. After all, why would someone put their financial neck on the line for you? The answer usually comes down to love and trust. Your co-signer believes in you and your ability to make your mortgage payments on time. They’re helping you get your foot in the door—literally—because they want to see you succeed. And remember, their involvement doesn’t have to be forever. Once you’ve built up enough equity and your financial situation improves, you can often refinance and remove the co-signer from the mortgage.

Things to Consider Before Getting a Co-Signer

Of course, there are some important things to keep in mind. Having a co-signer is a big responsibility—for both of you. If you miss a payment, it affects their credit too. That’s why it’s crucial to have an open and honest conversation about expectations, risks, and what happens if things don’t go according to plan.

But with clear communication and a solid plan, a co-signer can be the key that unlocks the door to your new home.

So, What’s the Next Step?

If you’re thinking about buying a home in Calgary and aren’t sure if you’ll qualify for the mortgage you need, consider talking to a trusted family member about becoming a co-signer. And of course, reach out to me—I can walk you through the process, help you understand the pros and cons, and find the best mortgage options available.

Don’t let the fear of rejection hold you back from your dream home. With the right strategy—and the right co-signer—you can make that dream a reality.

Final Thoughts

Remember, homeownership is a journey, and every journey is easier with a great team by your side. Whether it’s a co-signer, a real estate agent, or your friendly neighbourhood mortgage advisor (that’s me!), don’t be afraid to ask for help. Together, we can make your dreams of homeownership come true.

Can an Independent Mortgage Broker Get Me a Mortgage for a Former Grow-Op? (Updated August 28, 2024)

Can an Independent Mortgage Broker Get Me a Mortgage for a Former Grow-Op? (Updated August 28, 2024)

The short answer is yes—but the long answer? It’s no easy task. Securing a mortgage for a former grow-op property involves jumping through several hoops, but with the right guidance, it’s possible.

How Can You Get a Mortgage for a Former Grow-Op?

While it can be difficult, securing financing for a former grow-op property is achievable if the property has been fully remediated. The key to success is ensuring that all the necessary certificates and documentation proving remediation are available.

Most mainstream lenders, including big banks like CIBC, have strict requirements. The process starts with proving that the home has undergone full remediation. You’ll need documentation showing that every step of the remediation process has been completed according to municipal and provincial standards.

How Does Buying a Former Grow-Op Affect Property Value?

Financing a former grow-op in the mortgage broker channel is extremely limited. In Alberta, for example, only one lender typically finances such properties, leaving most buyers with a cash-only option.

This limited financing creates challenges for future resale value. Why would you buy a property that may be nearly impossible to sell later? The only reason that comes to mind is that buyers intend to make it a rental property or a forever home.

What Other Concerns Should You Have?

Beyond financing and property value, a home that was once involved in criminal activity, like a grow-op, can come with risks. These properties are often on the radar of criminals, increasing the potential for home invasions or break-ins.

Still Interested in Buying a Former Grow-Op?

If you’re determined to buy a former grow-op property, you’ll need the right team to navigate the complexities. I can connect you with a realtor experienced in these types of transactions and ensure you meet all the lender guidelines before you go shopping.

Call or text me at 403-807-8779, and let’s discuss your options.

Unbreakably clumsy.....with some mortgage tips.

Luck, Resilience, and Mortgage Tips: A Brother’s Journey in Calgary

The other week, while sitting in the emergency room at Calgary's Foothills Medical Centre, I was introduced to a nurse as "the not-so-clumsy brother." That phrase brought to mind an old saying: "If it weren't for bad luck, I'd have no luck at all." But why did that come to mind? Let me take you back to a time when life seemed simpler, yet no less perilous.

It was a typical day at a trailer park just outside the Shilo military base. We were a bunch of kids, full of energy and not an ounce of caution, crafting bike jumps from scraps of wood. The thrill was in the risk—until it wasn’t. On one of those daring jumps, I found myself on the way to the hospital for stitches. The novelty of that first trip made it almost fun, a badge of honour for a young adventurer.

Fast forward a few years to Carp, another military base, and the scene changes to a game of horseshoes. We were outside a mess hall, aiming for ringers, when a stray horseshoe sent someone else running for stitches. Another trip to the hospital—still somewhat exciting, but the fun was starting to wear thin.

A few more years down the road, we were on a ski trip in Germany. A jump on the slopes went wrong, and another hospital visit was chalked up to the growing list. By this time, hospital visits were becoming routine, and the excitement had long since faded.

Then came a day when someone wasn’t paying attention while playing chicken with a parked car. This time, the injuries were more serious, and the fun had completely vanished. Hospitals became places of dread rather than adventure.

But the toughest battle came years later when Leukemia knocked on his door. It wasn’t invited, but it barged in anyway. Yet, in true resilient fashion, he fought back—inviting it to dinner only to kick it out once it overstayed its welcome. This battle wasn’t about bad luck; it was about resilience, strength, and refusing to give in.

Most recently, it was a new bike and a gully that proved to be formidable opponents. The crash left him with seven broken ribs, two breaks in his neck, two in his back, a broken wrist, sternum, and collarbone—not to mention a punctured lung. Lying unseen at the bottom of that gully for hours, it was clear that the fight for survival was very real, yet again.

Through all these trials, I can’t help but think of the movie Unbreakable. The contrast between one person’s unyielding luck and another’s persistent bad luck is striking, yet there’s something profoundly relatable in those stories. We all root for the underdog, the one who faces impossible odds and still finds a way to triumph. That’s the essence of storytelling—the journey that brings fulfillment, peace, and a sense of accomplishment.

As I reflect on my brother’s journey, I’m reminded of the importance of perspective. It’s not just about surviving; it’s about thriving, making the most of what life throws at us, and being prepared for the unexpected.

Now, About Your Calgary Mortgage…

You might be wondering where the mortgage hacks come in. Well, here it is: just like my brother faced his challenges head-on, you should take the same approach with your financial life—especially when it comes to your mortgage, particularly here in Calgary's competitive housing market.

If your mortgage renewal is coming up in Calgary, don’t take it for granted. Don’t procrastinate. Life is full of surprises, some good, some bad, but ignoring your mortgage isn’t a risk worth taking. I’ve seen too many Calgary homeowners pass up the opportunity to save $12,600 in interest simply because they were distracted by other pursuits, like a vacation in the Rockies or a new toy. Yes, live your life to the fullest, but don’t let that stop you from making smart financial decisions.

When your mortgage is due for renewal, take the time to shop around Calgary's competitive mortgage market. Just because it’s not broken doesn’t mean it can’t be improved. Let me help you explore better rates and products tailored to Calgary’s unique housing environment. What do you have to lose? In fact, what you stand to gain could be worth $12,600 for just an hour of your time—now that’s a return on investment that could help you tick off more items on your bucket list.

So, let’s talk. Let’s ensure your mortgage works as hard for you as you’ve worked to get where you are today in Calgary.

Call or text me at 403-807-8779

I live in Canyon Meadows, but we can meet wherever.

Richmond.s.michael@gmail.com

www.michaelrichmond.ca

Edited:  August 28th, 2024

Invest in tomorrow, invest in you.

What Katy Perry Can Teach Us About Mortgages and Life

On my way to work in Calgary this morning, I heard a quote from Katy Perry that made me stop and think. She mentioned that she prefers dating famous guys because she doesn’t have to spend hours explaining why a tough tour schedule or a bad interview is frustrating—they just get it. This got me thinking about how much time we spend trying to make others understand things that should be simple.

Now, I’m not here to give relationship advice to Katy Perry, but if it takes you hours to explain basic concepts to someone, maybe it's time to look for someone with a bit more depth. This applies to more than just relationships—let’s talk about life decisions, like managing your mortgage.

Speaking of people who don't quite get "it," I wasn’t exactly the brightest kid growing up. I made my fair share of mistakes—probably more than I could ever recount. But if sharing some of these experiences can help you avoid similar pitfalls, then it’s worth it.

Here’s my confession: I used humour as a shield against life’s stressors—bullies, death, relationships. When humour didn’t work, I’d simply ignore problems, hoping they’d go away. This was my go-to strategy, probably thanks to a mix of genetics and upbringing.

Looking back, I can see a pattern that started in the 8th grade with a girl named Candace Taylor. When I found out she was cheating on me, instead of confronting her, I just stopped talking to her. No closure, no drama—I just distanced myself until the relationship dissolved. This became my MO for dealing with uncomfortable situations. It was easier to avoid than to confront.

That changed when I started working at a bank 17 years ago. In my first year, I developed a tooth abscess. True to form, I ignored it—until the pain became unbearable, and I nearly passed out at work. A trip to the dentist ended with him saying it was one of the worst he’d ever seen. After a root canal and some serious medication, I felt a lot better.

This experience was a turning point for me. I realized that dealing with problems head-on, whether by confronting them myself or consulting an expert, was far better than hoping they’d disappear on their own. Ignoring the pain didn’t make it go away; it only made things worse. From then on, I adopted a "DO IT NOW" mentality, though I still keep humour handy, just in case.

So, why am I telling you this? What’s the connection to mortgages? Simple: I see a lot of people making the same mistake I did—ignoring important decisions until it’s too late. When it comes to mortgage renewals, too many people just sign the renewal form and send it back without shopping around or asking for a better rate. Worse, they walk into their bank, assume they’re getting a good deal, and never think to challenge it.

When I ask why, the answer is often loyalty. Many believe that staying loyal to their bank will earn them better rates and services in return. Unfortunately, that’s not always the case. Banks are businesses, and their primary goal is to make money, not necessarily to reward your loyalty.

Here’s What You Should Do Instead:

1. Figure Out Your Goals and Objectives: Understand what you want from your mortgage and how it fits into your long-term financial plan.

2. Shop Around: Don’t settle for the first offer you get. Compare rates and products from different lenders, and yes, you should definitely call me!

3. Ask for a Better Rate: Even if you decide to stay with your current lender, ask them to match or beat the best rate you find. You’d be surprised how often they’ll accommodate you.

I know I can’t help everyone, but if you follow these three simple steps, you could save thousands on your mortgage. Just don’t blindly sign that renewal slip and send it back—take control of your financial future.

This is a big part of why I became a CIBC Mortgage Advisor here in Calgary. I wanted access to the best products and rates for my clients because I know that the rates at each bank can change daily—sometimes even multiple times a day. It’s my job to ensure you get the best deal possible.

Don’t Ignore It, Don’t Rinse It Out with Salt Water, Don’t Stop Calling Her!

You’ll regret it when you realize how much you could have saved.

What? You don’t like me yelling? Okay, I’ll step off my soapbox. But before I go, let me leave you with this: The key to financial success is spending less than you earn. Whether you invest those savings in your mortgage, a GIC, or any other venture that brings returns, the important thing is to invest in your future.

Invest in Tomorrow, Invest in You.