Alta Pacific's Blog

5 Ways to Reduce Your Debt

altapacific — Tue, 17 Jan 2012 20:05:37 +0000

When used wisely, debt can be a good thing. It can help you buy a house, pay for your education, or enhance your standard of living. However, if you’re borrowing gets out of hand it can lead to many problems such as running out of money, not being able to deal with unexpected costs, causing stress and much more…

Have a look at the following 5 tips that will help you gain control of finances and reduce your debt:

Make a Budget and Reduce Your Spending

First things first – make a budget and plan your spending. Planning a budget helps you to track where your money goes and enables you to achieve financial success.

Determine your monthly income and then figure out your expenses. Decide how much you would like to put aside for saving and create a template or use this Budget Worksheet. Try to cut down on as many of your personal expenses as possible, such as clothes and eating out. By following your budget, you can put any extra money you have each month towards lowering your debts and saving money on interest fees.

Consolidate Your Debt

Debt consolidation loans offer the chance to pay off your debt faster while paying less interest. All of your individual debts are collected into one loan, giving you just one low, easy-to-manage monthly payment. This saves you money on interest fees and lets you pay off your loan faster.

Contact Your Creditors

Don’t be afraid to contact your creditors and try to re-negotiate your arrangements. Contact your creditors and request one or more of the following:

Lower monthly payments
Longer time period to make your payments
Lower rate of interest

More often than not your creditors will work with you to accommodate your needs to the best of their ability.

Communicate With Your Mortgage Lender

Contact your mortgage lender as soon as you run into mortgage problems. Do not feel as though you need to dodge or avoid your lender, as this will just cause more problems for you. Your mortgage lender will work with you to find a solution.

Restructure Your Assets

A personal asset is something that you own. If you cannot earn more money or alleviate your expenses, selling a personal asset (such as your car), down-sizing to a less expensive house, or using savings, investments or cash to pay off outstanding loans can reduce the cost of your debt.

The longer you owe money, the more it is going to cost you. So aim to manage your finances today and pay off your debt as quickly as possible. Before you know it you will be enjoying a hassle-free financial life with controlled financial affairs.

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At Alta Pacific we are active in the specialty mortgage market in Western Canada. The big conventional banks focus on conventional mortgage opportunities leaving opportunities in the specialty mortgage market for Alta Pacific Mortgage Investment Corp. and other MICs that participate in this market. If you are interested in learning how you can share in the returns generated by specialty mortgages, we invite you to learn about Alta Pacific MIC. We focus on consistent returns for registered investors (those with RRSP, LIRA, RESP, TFSA etc.) or open investments (for Canadians with cash on hand). Alta Pacific works with Western Canada’s best Exempt Market Dealers and will work to understand your current situation and future need. Feel free to contact us directly with any questions you might have.

www.altapacificmortgages.com

Security. Growth. Transparency.

Urban starts down in BC and Prairies December 2011

altapacific — Tue, 10 Jan 2012 14:25:40 +0000

Today the CMHC announced the housing starts stats for December 2011. The gross starts are up across the country with Ontario and the Atlantic provinces leading the growth. In Western Canada (where Alta Pacific primarily operates), urban starts decreased by 19.8 per cent in British Columbia and by 11 per cent in the Prairies.

The full news release is available on the CMHC website – here

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www.altapacificmortgages.com

Security. Growth. Transparency.

Merry Christmas and Happy New Year from Alta Pacific!

altapacific — Fri, 06 Jan 2012 18:58:39 +0000

Your friends at Alta Pacific hope that you had a Merry Christmas and safe, enjoyable New Years.

While it’s a new year on our calendars, its mid-year for Alta Pacific Mortgage Investment Corp. as our fiscal year spans from July 1 – June 30. The first 6 months of our 2012 fiscal year (July 1 – Dec 31) has performed as expected. We remain confident in achieving our target return to investors of 8-11% per annum in 2012. Alta Pacific continues to locate quality mortgage lending opportunities through our network of mortgage brokers and contacts in the Western Provinces. Newly funded mortgage loans, coupled with a stable real estate market in Western Canada, gives continued confidence in the performance of our fund over the coming quarters. Our focus on low loan-to-values (LTV) has allowed us to outperform our target of 65% LTV for the overall fund. This LTV underscores our primary focus of protecting capital and keeping each shareholder’s investment safe and secure.

As we start 2012, we may find ourselves thinking about New Year’s resolutions. Sometimes our resolutions are about personal health or time spent on important priorities; and sometimes they are about financial matters. When it comes to financial affairs, there are things we can all do this year that improve our financial “health” – namely improving our credit score / credit report. Adult Canadians – with few exceptions – have a credit score / rating. Our credit rating affects all aspects of our financial activities when it comes to borrowing money. It has the ability to affect employment, the mortgage we attempt to refinance or close… even the apartment we rent and our ability to open a bank account. Think of it as a stranger’s (i.e. the bank) way of determining your ability to repay them when they entrust you with money or something of value. The behavior of people in the past tells an awful lot about the likely behavior in the future, so each of us has a credit rating that tells this with a score from poor (under 600) to excellent (700 and above).

Here are some simple steps to keep your credit score in good shape:

1. Never miss a payment – set up pre-authorized minimum payments for your credit cards.
2. Avoid using more than 75% of the limit on credit cards and lines of credit. Never exceed the limit.
3. Don’t think “I’ll show them” by not paying an old cell phone bill (for example). Sometimes the smallest unpaid debts cause the biggest credit score problems.
4. Review your credit report once a year – this will help you to catch inaccuracies and track overall health of your credit history – www.equifax.ca is one place to do this.

For those without credit history; obtain two credit cards from recognized financial institutions. Always follow the above 4 steps and life will be grand.

For more information about credit scores visit: http://www.fcac-acfc.gc.ca/eng/consumers/creditloans/index-eng.asp

Finally, have a look at how your credit ranking is weighted. Some things are more important than others so make it this year’s resolution to not only follow steps 1 – 4, but also to understand how to improve your credit score by understanding how banks and lenders think about you.. 2012 might just turn out to be your best financial “health” year yet!

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If you are interested in learning how you can share in the returns generated by mortgages, we invite you to learn about Alta Pacific MIC. We focus on consistent returns for registered investors (those with RRSP, LIRA, RESP, TFSA etc.) or open investments (for Canadians with cash on hand). Alta Pacific works with Western Canada’s best Exempt Market Dealers and will work to understand your current situation and future need. Feel free to contact us directly with any questions you might have.

www.altapacificmortgages.com

Security. Growth. Transparency.

Is investing in Real Estate for young people?

altapacific — Wed, 04 Jan 2012 18:15:19 +0000

This question was posed by The Globe and Mail this week in the article titled “Investing in property: a young person’s game?“

The article goes on to talk about how the stock and bond markets are spinning their wheels and many Canadians are looking for alternative places to invest their money.

The thought for many is that investing directly in real estate is a large effort. If you are a home owner you already know the effort of managing house maintenance, insurance, property taxes, not to mention the monthly mortgage payment, utilities and the required upgrades from time to time. The thought of owning rental property for many Canadians adds a few more items to that list; finding tenants, keeping them happy, collecting rents, dealing with move-outs and move-ins etc. And if you happen to have a bad tenant, watch out, it can be a bit of a nightmare.

So, some of the alternatives that Canadians turn to when they think about investing outside of equities, stocks, bonds or mutual funds… is to look at real estate investments that do not carry the burdens of home (or condo/townhouse) ownership. These include REITs and MICs. A REIT is a Real Estate Income Trust and a MIC is a Mortgage Investment Corporation. They have many similarities and a few key differences. Think of it simply this way:

In a REIT, investors are essentially investing in real estate through the REIT entity and the REIT entity manages the many things required in real estate ownership (both commercial properties and multi-unit residential). The REIT entity generates its income from the monthly rent collected from tenants of the properties.
In a MIC, investors are essentially investing in real estate through mortgages. The MIC entity manages a portfolio of mortgages secured by Canadian based real estate (both commercial and residential). The MIC entity generates its income from the monthly mortgage payments collected from borrowers of the properties.

As an investor in either a REIT or a MIC, the key is to understand the current portfolio of the entity you are considering investing in along with feeling comfortable with the key personnel that operate the entity. Find the right combination and you should experience long term consistent returns that outperform many traditional investments.

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www.altapacificmortgages.com

Security. Growth. Transparency.

Alta Pacific Mortgage Investment Corp (Alta Pacific) announces a return of 11.65% p.a. to its Class B shareholders.

altapacific — Tue, 04 Oct 2011 20:55:16 +0000

Alta Pacific is pleased to announce the fund’s yield for the year ending June 30 2011. Alta Pacific MIC exceeded its target of 8-11% and delivered 11.65% per annum to its Class B shareholders.

To Shareholders: The directors and managing partners of Alta Pacific appreciate each shareholder for their continued support and confidence in the fund. The Alta Pacific team is proud to work day to day in pursuit of consistent returns to our shareholders. With a corporate year end of June 30, the fund’s year runs from July 1 to June 30. The 2010/2011 year was an exciting one as the fund saw solid growth; adding more than 230 new shareholders. As the first quarter of the 2012 year (July – Sep ’11) comes to a close, we are on track to exceed 2011’s growth and we’re confident in another strong year of performance.

Alta Pacific shareholders will be receiving a letter in the mail with one of four below enclosed;

• A dividend cheque (the 13th dividend top up if you chose the 8% p.a. monthly dividend option)

• A dividend cheque for the full 11.65% (if you chose to receive full cash dividend once per year)

• A newly issued share certificate (if you chose to re-invest your dividends)

• A statement showing your account balance in your registered fund account (either at Olympia Trust Company or Canadian Western Trust); including a copy of the share certificate or cheque that is en route to the trust company.

Total dividends paid (by cheque or shares) to shareholders in the 2011 fiscal year totaled $665,187.00.

To Financial Advisors: Alta Pacific is proud to work with the industry’s finest financial advisors and exempt market dealers. Each advisor’s role in working with clients and helping them reach their financial goals allows us to stay focused on our core business; funding quality Canadian mortgage. We appreciate your continued support and look forward to another year working together.

To Mortgage Originators: As a lender, Alta Pacific relies on mortgage opportunities presented to the fund by mortgage brokers across Canada. In the last year we have communicated with thousands, receive files from hundreds, and worked closely with dozens of brokers. We value these relationships and look forward to continued success working with the broker channel. We continue to look at BC and Alberta as our preferred lending zones with a focus on urban markets. Alta Pacific’s target loan to value (LTV) remains at 65% (ranging higher for quality residential mortgages and lower for unique properties or commercial loans). Balance is key to Alta Pacific’s portfolio and we always maintain at least 50% of our assets in residential mortgages.

To Prospective parties: Alta Pacific remains a growth fund. All parties are invited to contact us in regards to working together. We welcome new investors, and invite financial advisors to speak to us if interested in marketing Alta Pacific MIC. We are committed to the EMD (Exempt Market Dealer) channel and comply with all regulatory changes that our industry has seen introduced in past months.

While expanding our mortgage broker channel, we welcome brokers from all organizations to speak to us regarding how Alta Pacific can help fulfill their clients lending needs.

Our 2011 audit is complete. The audited financials, along with an updated Offering Memorandum, will be posted on our website in the coming weeks. If you would like to receive a printed copy of these documents; please call, email or fax.

The calendar year for 2011 is moving quickly so we wish all a prosperous fall.

MIC Fast Facts

• 380 investors (100% Canadian)

• 46.1% investors choose 8% per annum (pa) monthly dividend

• 53.9% investors choose to re-invest dividends

• 72% investing with registered funds (RRSP); 28% with open funds

• Corporate year end is June 30

• Target loan-to-value (LTV) for fund - 65%

• Current LTV for fund - 54.86%

• Average LTV residential - 61.36%

• Average LTV commercial - 35.58%

• 1st mortgages - 45.45%

• 2nd mortgages - 54.55%

• 3rd mortgages - 0%

• Residential mortgages - 80.06%*

• Commercial mortgages - 19.94%*

• BC mortgages - 16.17%

• Alberta mortgages - 76.66%

• Saskatchewan mortgages - 7.17%

• Mortgages in foreclosure – 1

• Foreclosure as a percentage of assets under management - 0.81%

• On track for 8-11% annual target return to investors in 11/12 – Yes

As of October 03, 2011. Loan to Value (LTV) percentages are based on independent third party appraisals performed in a reasonable time period prior to funding. Alta Pacific MIC does not currently hold mortgages with greater than 12 month terms. Appraisals are less than one year old and therefore the fund manager remains confident in the LTV stated

* Alta Pacific’s residential / commercial mortgage balance is targeted at 50% residential / 50% commercial. Due to the nature of mortgages maturing on a month by month basis, this balance varies throughout the year.

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If you are interested in learning how you can share in the returns generated by mortgages, we invite you to learn about Alta Pacific MIC. We focus on consistent returns for registered investors (those with RRSP, LIRA, RESP, TFSA etc.) or open investments (for folks with cash on hand). Alta Pacific works with Western Canada’s best Exempt Market Dealers and we can introduce you to folks that will work to understand your current situation and future needs; and who can assist you in choosing the right Alta Pacific options for your investment. Or feel free to contact us directly with any questions you might have.

www.altapacificmortgages.com

Security. Growth. Transparency.

We really like mortgages – and naturally real estate – as an investment vehicle

altapacific — Fri, 09 Sep 2011 23:10:59 +0000

Investing is a challenge. Investing so you see consist growth can be downright difficult. Talk to almost anyone and you will hear varying opinions on what to do. Buy gold, oil, this stock, that stock, livestock, real estate, foreign exchange… you have heard them all. Today the uncertainty seems to be at a higher level than ever. Watching the TSX, DJIA, S&P 500, and Nasdaq on a daily basis is like watching a bee buzzing near your porch light; it’s unpredictable to say the least.

Let’s look at some facts. Over 11 years ago, on January 1, 2000 to be exact, the DJIA (Dow Jones Industrial Average) opened at 11,487 points. Over 11 years later it sits around 11,000. The Dow is an index that shows how 30 large publicly owned companies, based in the United States, are trading collectively. You do not need to be a mathematician to know what investing in the equity markets has done; a dollar invested in the Dow 11 ½ years ago today would be worth about the same – plus or minus a few pennies (not taking into account the dividends that many Dow 30 companies pay). Compare that to your home, land, farm, or commercial property.

How about Warren Buffett? He is a very smart man running one of the most respected fund companies in the world; Berkshire Hathaway (BRK). BRK’s share price has not quite doubled in these 11 ½ years (up 89.95% in 141 months). This is the equivalent return of 5.75% per annum over the 11 ½ years. And of course you have to be able to buy BRK that trades for more than $100.000 per share.

So think about what you own in real estate today and how much value it has gained since 2000 and how much your equity has increased. This will vary based on your location but most Canadians will find that their best investments have been in real estate. We at Alta Pacific certainly have experienced this. Investing in mortgages has proven to be a very consistent and reliable investment vehicle for us. As we finalize our audit for the 2011 year (with our year in June 30th), we are on track to once again exceed our target rate of return of 8-11% per annum.

And finally, with investments in real estate and mortgages, isn’t it nice to not have to watch that buzzing bee on a daily basis.

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If you are interested in learning how you can share in the returns generated by mortgages, we invite you to learn about Alta Pacific MIC. We focus on consistent returns for registered investors (those with RRSP, LIRA, RESP, TFSA etc.) or open investments (for folks with cash on hand). Alta Pacific works with Western Canada’s best Exempt Market Dealers and we can introduce you to folks that will work to understand your current situation and future needs; and who can assist you in choosing the right Alta Pacific options for your investment. Or feel free to contact us directly with any questions you might have.

www.altapacificmortgages.com

Security. Growth. Transparency.

We do not always think of interest rates in this way

altapacific — Tue, 02 Aug 2011 18:36:37 +0000

Usually we think of interest rates being affected by inflation. The Central Banks (BoC and the US Fed) watch inflation and change the overnight rate accordingly. Then the overnight rate affects the banks rates to businesses and consumers. But in an article we read this morning, the following was described.

Canada has a growing proportion of older savers and a shrinking proportion of young borrowers. View the shift in the age of the population in this “David Foote population pyramid” and you’ll see graphs for Canadian demographic trends (give it a few seconds to start changing on your screen). When you combine a growing supply of cash to lend with declining demand by borrowers, it is reasonable to expect that interest rates could stay low for several decades.

No one has a crystal ball but this was rather interesting nonetheless.

The interest rates that we – as a mortgage fund – deal with are connected to a different set of fundamentals than inflation or supply/demand by population changes. Yes, these factors will have an affect but if you are interested in learning how you can share in the returns generated by specialty mortgages, we invite you to learn about Alta Pacific MIC. We focus on consistent returns for registered investors (those with RRSP, LIRA, RESP, TFSA etc.) or open investments (for folks with cash on hand). Alta Pacific works with Canada’s best Exempt Market Dealers and we can introduce you to folks that will work to understand your current situation and future needs; and who can assist you in choosing the right Alta Pacific options for your investment. Or feel free to contact us directly with any questions you might have.

www.altapacificmortgages.com

Security. Growth. Transparency.

“Alberta created more jobs in June 2011 than the entire United States”…But don’t say BOOM Western Canada!

altapacific — Mon, 25 Jul 2011 19:09:01 +0000

Well the West is certainly a great place to call home; and not just because of the Rockies, the beautiful prairies, or the BC Coast. It’s a great place to live because of great people and some very sound economic times. It is not a common occurrence these days to speak to someone who has lost a job or who is finding it a challenge to find a new one. Home prices have been stable in most markets and rising in others, and the key economic indicators (GDP growth, new jobs, housing starts etc.) are all quite strong. Here are a few examples of what we’ve seen recently across the western provinces.

At the premiers’ conference (being held during the week of July 20th in Vancouver) BC’s Christy Clark, Alberta’s Ed Stelmach and Saskatchewan’s Brad Wall have all been talking extensively about exporting Canada’s energy riches to new markets and looking to increase ports and pipeline capacity to help feed an insatiable energy appetite from countries like China and India. Clark said “Asia-Pacific … of course is going to drive the economic success not just of British Columbia or the West, but the entire economy of Canada.”

On the topic of jobs, did you know that Alberta created more jobs in June 2011 than the entire United States?

But don’t say BOOM! Even Ted Menzies, junior federal finance minister, doesn’t want to use that word. He stated at a news conference in Calgary in July 2011 “I always try and avoid the boom word in Alberta because we all know what follows the boom….the other B word…it’s slow and it’s steady (growth). I think that’s very important.”

Hop one province east, Saskatchewan, and you will find the fastest growing city in Canada – Saskatoon.

And with interest rates set to only rise gradually, according to the Bank of Canada, we don’t expect any rash changes in the current course of the cost of money. I guess the one question mark might be in what is going to happen with the Canadian dollar against the greenback. There sure are many opinions on where it will go as it currently sits at the highest level in three years.

All these positive economic signs are good for mortgage companies like us. We pride ourselves on being an opportunity lender and when the Western Canadian opportunities are bountiful, it works well for us.

Alta Pacific Mortgage Investment Corp. publishes newsletters and updates throughout the year. We hope to provide a balance of news about our mortgage fund (Alta Pacific Mortgage Investment Corp.) as well as our thoughts and views of the economy and important news from the western provinces.

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Did you know?

These are the types of mortgages Alta Pacific is funding now…

Residential & Commercial properties
Urban areas (Vancouver, Burnaby, Langley, Edmonton, Calgary, etc.)
$50,000 to $750,000 loan amounts
Max 1 year terms

Articles of Interest

“Ontario premier decries ‘subsidies’ for Western Canada’s energy industry…”
Read more…

“Alberta adds 22,000 jobs in June…”
Read more…

“Saskatoon fastest growing city in Canada…”
Read more…

“Bank of Canada: Interest rate hikes will likely be gradual…
Read more…

• ”Canada’s dollar at almost three-year high on Carney rate stance…”
Read more…

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If you are interested in learning how you can share in the returns generated by mortgages, we invite you to learn about Alta Pacific MIC. We focus on consistent returns for registered investors (those with RRSP, LIRA, RESP, TFSA etc.) or open investments (for folks with cash on hand). Alta Pacific works with Western Canada’s best Exempt Market Dealers and we can introduce you to folks that will work to understand your current situation and future needs; and who can assist you in choosing the right Alta Pacific options for your investment. Or feel free to contact us directly with any questions you might have.

www.altapacificmortgages.com

Security. Growth. Transparency.

A lot of talk about real estate rental (residential and commercial) in Vancouver

altapacific — Sun, 12 Jun 2011 19:35:07 +0000

Readers of the Vancouver Sun in recent days are getting their fair share of news on the rental situation of both residential and commercial. The city’s average residential rent (based on two-bedroom apartments) sits at nearly $1,200/month; and is the most expensive in Canada. Meanwhile, commercial retail rental rates on Robson Street are 3rd most expensive in Canada. Here are a few of the articles you’ll find in recent days.

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Vancouver’s average rent, at $1,181, most expensive in Canada: CMHC

Demand is outstripping supply in the country’s apartment rental market, pushing the national vacancy rate lower and making it more difficult for renters to find accommodations, Canada Mortgage and Housing Corporation reported Thursday.

23 Metro Vancouver rental apartments: From $850 to almost $10,000 a month

The following are 23 two-bedroom rental properties in Metro Vancouver listed on Craigslist, and it appears getting a unit for the average price of $1,181 within city limits will be very challenging for renters.

Photos: The highest rents in Canada’s major cities

Find out what the average monthly rents are in Canada’s major cities according to Canada Mortgage and Housing Corp.’s April 2011 Rental Market Survey.

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As a mortgage lender in Western Canada, Alta Pacific keeps a keen eye on property values, rental rate changes, changes in vacancies, job growth, overall economic indicators (to name a few) in the Western Provinces. We also look outside our Provinces to see what might cause pressure on one or many of these in the coming months, quarters or years. We do this so we are well prepared to advance mortgages to borrowers in primarily BC and Alberta.

If you are interested in learning how you can share in the returns generated by mortgages, we invite you to learn about Alta Pacific MIC. We focus on consistent returns for registered investors (those with RRSP, LIRA, RESP, TFSA etc.) or open investments (for folks with cash on hand). Alta Pacific works with Western Canada’s best Exempt Market Dealers and we can introduce you to folks that will work to understand your current situation and future needs; and who can assist you in choosing the right Alta Pacific options for your investment. Or feel free to contact us directly with any questions you might have.

www.altapacificmortgages.com

Security. Growth. Transparency.

Mortgages being funded by Alta Pacific in May

altapacific — Thu, 12 May 2011 16:49:49 +0000

If you follow this blog, you will know that we post updates from time to time on mortgages funded by Alta Pacific Mortgage Investment Corp (for instance here, here and here). We have several mortgages underway at all times but like to highlight a random sample once in a while to give investors/shareholders, financial advisors, EMDs, or curious readers some insight into the operations of Alta Pacific MIC. If you ever have questions, please don’t hesitate to contact us (or visit us at our offices in Vancouver and Edmonton).

Second mortgage on a residence in West Vancouver, BC. The borrower has solid income and requires the funds to invest in a business with a colleague. 12 month term on the mortgage. The loan to value (LTV) is under 55% and interest is in the 10-13% range. Mortgage was sourced through a mortgage broker in the Vancouver market.
First mortgage on a commercial property (industrial + office) in Edmonton, AB. The borrower requires the funds for less than a year. Loan to value (LTV) is low (under 40%) and the interest is in the 10-13% range. Mortgage was sourced by Alta Pacific directly.

We welcome Western Canadians to contact us when they find themselves in need of capital/funds. While its common to think that Canadians who find themselves in this situation are in some type of financial trouble, quite the contrary is often the case. We sometimes refer to these situations as opportunity lending. Meaning, a client has an opportunity that – with speed – he/she can execute on. He might need funds quickly to buy an asset or to secure a business opportunity. Alta Pacific can act fast in helping in these situations. We work directly with homeowners, developers, home builders, commercial real estate investors, mortgage brokers, professionals who offer financial advice to their clients (that could be accountants, lawyers, bookkeepers, financial advisors) in resolving needs for short term capital requirements.

On the other hand, if you are interested in learning how you can share in the returns generated by specialty mortgages, we invite you to learn about Alta Pacific MIC. We focus on consistent returns for registered investors (those with RRSP, LIRA, RESP, TFSA etc.) or open investments (for folks with cash on hand). Alta Pacific works with Western Canada’s best Exempt Market Dealers. We can introduce you to folks that will work to understand your current situation and future needs; and who can assist you in choosing the right Alta Pacific options for your investment.

www.altapacificmortgages.com

Security. Growth. Transparency.