📣 Home Tip Tuesday: What Real Estate Investors in Alberta Need to Know

Are you considering investing in rental or revenue properties in Alberta? Big changes are coming that could impact your strategy — let’s break it down.

🔍 What’s changing?

• Starting January 2026, lenders will tighten how they evaluate mortgages for income‑producing residential properties. The rules will include:
  • Rental income can only be counted after expenses and only for the property being financed. MMG Mortgages - Alberta Mortgage Broker
  • You won’t be able to reuse the same rental income stream to qualify for another mortgage. MMG Mortgages - Alberta Mortgage Broker
  • Lenders will face higher capital requirements when financing these properties, which typically means stricter criteria for borrowers. MMG Mortgages - Alberta Mortgage Broker

• Additionally, if you own property in the City of Calgary, 2025 will bring a higher provincial portion of your property tax. For residential properties, the provincial‑requisition portion rises significantly compared to 2024. https://www.calgary.ca

🎯 Why this matters to you as an investor:

• Your borrowing power may shrink: You won’t be able to stack multiple investment mortgages using the same rental income.

• Your deal math changes: Net rental income will play a more critical role — gross rents minus expenses matter more.

• Your tax & holding costs might increase: Higher property taxes mean you’ll need to model that into your ROI.

• You’ll need to plan ahead: If you’ve been thinking of acquiring multiple revenue properties shortly, this window may be one to act sooner rather than later.

🛠 What you can do now to stay ahead:

1. Review your current portfolio: Are there properties where the rental income is being used to support multiple mortgage applications? If yes, plan now for when the rules change.

2. Update your cash‑flow models: Use net income (rents minus all expenses) instead of just gross rents to assess each property’s viability.

3. Build in margin: With property taxes going up in Calgary and likely elsewhere, build a buffer to account for higher holding costs.

4. Talk to your lender or mortgage broker: Make sure you understand how they will interpret the new rules and how it affects you specifically.

5. Educate your clients (if you’re helping investors): Use this as a differentiator to show you’re ahead of regulatory shifts and can help structure deals accordingly.

💡 Takeaway:
With tighter borrowing rules and higher costs on the horizon, the smartest investment strategy in Alberta will be built on realistic income, sound expense planning, and proactive timing. Use this moment to position yourself strategically — get the right property, under the right structure, at the right time.