I am asked by both clients and real estate professionals on a weekly basis for information and advice regarding basement suites. This is a very serious issue here in the Lethbridge Alberta real estate market as our basement suite marketplace is prime for investors who are looking for maximum return on their real estate investment, and also for home buyers who wish to supplement their income and help make their mortgage payment with a little revenue out of a secondary suite in their property.

So, as a matter of interest and public benefit, here is a link and the original text of the Alberta Fire Code which governs these suites. It is pretty important to read it and understand it before buying or selling a property with a suite in it. It is also very important the all real estate professionals familiarize themselves with the code prior to listing, marketing, or showing such properties as they may accidentally walk into some liability due to being uninformed. I did write a similar post on these suites which you may be able to dig up with a little effort, or you could just give me a call directly if you need some assistance.

So here it is. It is pretty dry reading and unless you have the personality of a lawyer or a rock (sorry rocks), your likely going to be speed reading and skipping lines before you get one third of the way through it. Enjoy.

Robert May

Lethbridge Fire Code for Suites

Requirements of the Alberta Fire Code 2006 Section 2.16 Secondary Suites:
1. 2.16.2.1. Height of Rooms and Spaces
1)Unless acceptable to the authority having jurisdiction, the height of rooms or spaces in
a secondary suite over the required minimum area in accordance with Table 9.5.3.1. of
Division B of the Alberta Building Code 2006 shall be not less than 1.95 m.
2. 16.2.2. Bedroom Windows
1)Except as permitted in Sentence 9.7.1.2.(1) of Division B of the Alberta Building Code
2006, each bedroom within a secondary suite shall have at least one outside window that
meets the requirements of Articles 9.7.1.2. and 9.7.1.3. of Division B of the Alberta
Building Code 2006.
3. 16.2.3. Exit Stairs
1) Exit stairs shall have a clear width of not less than 860 mm.
4. 16.2.4. Landings
1) Landings for stairs shall be at least as wide as the stairs and not less than 900 mm in
length.
5. 16.2.5. Handrails and Guards
1) Handrails and guards shall conform to the requirements of Subsections 9.8.7. and
9.8.8. of Division B of the Alberta Building Code 2006.
6. 16.2.6. Public and Exit Corridor Width
1) The clear width of every public corridor and exit corridor shall be not less than
860 mm.
7. 16.2.7. Unenclosed Exterior Stair or Ramp
1) Where an unenclosed exterior exit stair or ramp provides the only means of egress
from a secondary suite and is exposed to the hazards of fire from unprotected openings in
the exterior wall of another dwelling unit, the openings shall be protected in conformance
with Articles 9.10.13.5. and 9.10.13.7. of Division B of the Alberta Building Code 2006.
8. 16.2.8. Exit Doors
1) Every exit door or door that provides access to exit from a secondary suite shall be
a) not less than 1 980 mm high,
b) not less than 810 mm wide, and
c) permitted to swing inward.
9. 6.2.9. Means of Egress
1) Except as permitted in Sentence (2), each dwelling unit shall be provided with at least
one exit that leads directly to the outside.
2) Dwelling units may share a common exit meeting the requirements of
Article 2.16.2.10.
10. 16.2.10. Protection of Exits
1) Every exit, other than an exit doorway, shall be separated from adjacent floor areas by
not less than one layer of 12.7 mm thick gypsum wallboard or equivalent material on
each side of the walls. (See Appendix A.)
11. 16.2.11. Dwelling Unit Separations
1) Dwelling units shall be separated from each other by not less than one layer of
12.7 mm thick gypsum wallboard or equivalent material on the ceiling and on each side
of the walls. (See A-2.16.2.10.(1) in Appendix A.)
12. 16.2.12. Protection of Public Corridors
1) A public corridor shall be separated from the remainder of the building by not less than
one layer of 12.7 mm thick gypsum wallboard or equivalent material on each side of the
walls. (See A-2.16.2.10. (1) in Appendix A.)
13. 16.2.13. Furnace Room Separations
1) A furnace room shall be separated from the remainder of the building by not less than
one layer of 12.7 mm thick gypsum wallboard or equivalent material on the ceiling and
on each side of the walls. (See A-2.16.2.10. (1) in Appendix A.)
2) A door shall be provided to each furnace room.-
14. 16.2.14. Heating and Ventilation Systems
1) For an existing secondary suite, a single heating and ventilation system may be used to
serve both the secondary suite and main dwelling unit.
15. 16.2.15. Smoke Alarms
1) Smoke alarms conforming to CAN/ULC-S531, “Smoke Alarms,” installed in
accordance with Subsection 9.10.19. of Division B of the Alberta Building Code 2006
shall be provided in each dwelling unit.
2) Smoke alarms shall be installed by permanent connections to an electrical circuit and
wired so that activation of one smoke alarm will cause all alarms within both dwelling
units to sound.
3) Smoke alarms shall be installed in areas that are common to both dwelling units and
connected in conformance with Sentence (2).
16. 16.2.16. Inspection, Testing and Maintenance of Smoke Alarms
1) Smoke alarms required by this Section shall be inspected, tested and maintained in
conformance with the manufacturer's instructions.

Makes you wonder why any customer would get a mortgage from one of the banks instead of using a mortgage broker? My rates beat RBC by almost 2 percent!!!! This is an insane amount and could be hundreds of dollars per month and tens of thousands of dollars you would pay extra to take a RBC mortgage. Insane!!!!

Look at these rates, mine are waaaaaaayyyyyy lower than these. Call me.

RBC Royal Bank changes residential mortgage rates

TORONTO, Oct. 9 /CNW/ - RBC Royal Bank announced today that it is increasing its residential mortgage rates effective October 10, 2009.

The changes are as follows:

Fixed Rate Mortgages

Six-month open 6.45 per cent (increase by 0.10 per cent)

Six-month convertible 4.65 per cent (increase by 0.10 per cent)

One-year open 6.45 per cent (increase by 0.10 per cent)

One-year closed 3.80 per cent (increase by 0.10 per cent)

Two-year closed 3.95 per cent (increase by 0.10 per cent)

Three-year closed 4.45 per cent (increase by 0.10 per cent)

Four-year closed 5.29 per cent (increase by 0.35 per cent)

Five-year closed 5.84 per cent (increase by 0.35 per cent)

Seven-year closed 6.80 per cent (increase by 0.20 per cent)

Ten-year closed 6.95 per cent (increase by 0.20 per cent)

Variable Rate Mortgages

Variable Closed RBC Prime + 0.00% (no change)

Special Fixed Rate Offers*

----------------------------

Six-month convertible 4.15 per cent (increase by 0.10 per cent)

Four-year closed 4.24 per cent (increase by 0.35 per cent)

Five-year closed 4.54 per cent (increase by 0.35 per cent)

Seven-year closed 5.35 per cent (increase by 0.20 per cent)

* The rates indicated are special discounted rates and are not the

posted rates of Royal Bank of Canada. To calculate a rate discount

compare the Special Offer rate against the posted rate for the

applicable term.

Special Offers may be changed, withdrawn or extended at any time,

without notice. Not available in combination with any other rate

discounts, offers or promotions

While this news does not affect us directly in North America, it does send a global signal and should serve as a wake up call for some. Read this breaking news....

The recent history of interest rate hikes

<!-- Summary -->

Australia's interest rate hike yesterday was said to be the first by a G20 country since the financial crisis began. When was the last rate jump, and by which country?

<!-- /Summary -->

The last rate hike among the Group of 20 was in Indonesia, where the key rate was boosted by 0.25 percentage points to 9.5 per cent in early October, 2008.

The Indonesian central bank was trying to take a bite out of rising inflation, even though almost everyone else in the world was cutting rates to try to stem the burgeoning financial crisis.

The previous G20 upward move was at the European Central Bank, which had pushed up interest rates by a quarter of a point in July, 2008, to 4.25 per cent.

When was the last time the Bank of Canada raised rates?

You have to go all the way back to July 10, 2007, when the Bank of Canada boosted the benchmark overnight rate by 0.25 points to 4.5 per cent.

The next change was a quarter-point cut to 4.25 per cent in early December of 2007, and it has been all downward since then. There have been nine more cuts, taking the overnight rate to its current level of 0.25 per cent.

If anyone has an Inman subscription I would love to have the full text of the article emailed to me pls.

Here is the link to Inman News, but you do need a membership to view the entire thing:

Inman News

Here is a snippet of the article

Gaming the real estate market

Online Monopoly goes hyperlocal, uses Google Maps

By Erik Pisor, Tuesday, September 22, 2009.

Inman News

Negotiating purchase prices, selling assets, and collecting rent isn't just a part of real-world real estate -- these are key features of Hasbro's Monopoly CityStreets, a new online version of the classic Monopoly board game that incorporates Google Maps as its game board.

"It's definitely a way to learn about real estate cash flow and investment," said Nick Roman, a Realtor with Melbourne, Fla.-based Tropical Realty of Suntree.

On Sept. 9, the day the game launched, about 1.7 million people worldwide attempted to log on and play, which led to server delays and the eventual restarting of the game on Sept. 17, said Donetta Allen, Monopoly spokesperson.

Of those who logged on, a portion included real estate agents like Roman.

"If anything, I thought (the game) would generate a little real estate publicity," said Robert May, a Realtor with Lethbridge Mortgage and Real Estate Info in Alberta, Canada. "I'm surprised they didn't work in real estate advertising and do some geo-targeted marketing," May said.

Both Roman and May began playing on Sept. 9 and quickly exhausted their initial $3 million in Monopoly money to acquire streets within the cities they currently reside, as any street in the world can be purchased and built up with various properties.

While using Google maps as the Monopoly board brings a realistic aspect to the game, the price paid for a street is not.

According to Allen, the value of a street is determined by its length, as the longer a street is the more building potential it has.

For instance, Downing Street in the U.K., home to the prime minister, initially cost $231,000, while Pennsylvania Avenue, which joins the White House and the U.S. Capitol, cost $2 million.

"They're not differentiating between residential and commercial zones," May said, adding the value of a street is also determined by how many lanes it has.

"There are better Web sites they could have used (to determine street values), like a postal or ZIP code system," he continued. ...

Thats all I can read of the article without a subscription, so if anyone has one to Inman news, feel free to post the rest or forward me a copy please.

Just read this great article regarding Canadian credit cards and the rule changes that are coming into effect soon. While I agree that they do not go far enough, it is at least a step in the right direction. This great article was posted on the blog section of yourmoney.ca and was authored by Kerry Taylor. I am going to go back to the site and check out more of their stuff, but for now here is the original article and a link to it as well.

http://blog.yourmoney.ca/2009/10/new-credit-card-rules.html

Do the new credit card rules go far enough?

Paying off your credit card bill just got a little bit easier. Maybe.

On January 1, 2010 a series of new rules will take effect that force banks to clarify payment details on your credit card statement and provide a standard grace period to pay off your plastic.

Under these rules, credit card companies must also give you advance notice of interest rate increases, stop credit limit increases without your consent, and limit debt collection practices.

But you'll have to wait until next September before the biggest change kicks in, when banks must give you a mandatory minimum 21-day interest-free grace period on all new credit card purchases when the outstanding balance is paid in full.

Interest rates and fees still high

Critics of the credit card regulations say the changes do little to help consumers.

"Skyrocketing high interest rates and the growing number of superfluous fees are the biggest hindrances for consumers," said New Democrat MP and consumer protection critic Glenn Thibeault in a statement. "If the government wants to protect Canadian credit card users, it must go all the way and implement substantial regulations that would put a cap on interest rates and eliminate many of the excessive fees that consumers are being charged."

Thibeault proposes that capping credit card rates at five per cent above prime would help "Canadians who are stuck paying interest rates as high as 25%" and would provide better protection from gouging, giving real relief.

Your new statement

Expect your credit card statement to look different in the new year when lenders must add a summary box that describes all fees and shows you how long it would take to fully repay the balance if you only make a minimum payment every month.

For example, under the new rules a summary box may show that a $5,000 credit card balance at an 18% interest rate would take 11 years and two months to pay off if you only make minimum payments. The total interest paid is about $2,873 and the total tab is $7,873.

But you don't have to wait for these new changes to see how interest rates and minimum payments bust your budget. Check out this Credit Card Calculator to get the facts today and see how many years it will take to payoff your balance. Results may shock you.

For more information on the changes coming to your credit card, see the regulations in the Canada Gazette.