The 2.5% Rate Cut is Here: Why Smart Investors Are Building in BC or Buying in Alberta
Date: December 17, 2025 | Category: Real Estate Investing, Market News | Reading Time: 6 Minutes
The headlines this month are dominated by the Bank of Canada cutting the benchmark rate to 2.5%.
It's the signal we've all been waiting for. After two years of holding your breath, the market is moving again. But if you're sitting in Surrey or Vancouver thinking about jumping back into a standard rental or a quick flip, I need to be real with you: the game has changed.
I'm seeing two distinct strategies emerging from my highest-net-worth clients right now. They aren't just buying "rentals." They are either Building in BC to beat the tax, or Buying in Alberta for the cash flow.
📋 Here is the financial playbook for 2026 👇
🏗️ Strategy A: The "BC Build" (Surrey, Kelowna, Victoria)
⚠️ The Challenge:
The BC Home Flipping Tax is now live. If you buy a property and sell it within 365 days, you are facing a 20% tax on your profit. That kills the traditional "fix and flip" model.
✅ The Varun Chaudhry Solution: Don't flip. Densify.
The government wants housing supply, which is why there are exemptions for those who add units.
- The Play: My clients are actively purchasing single-family lots in Surrey and the Fraser Valley that are zoned for Bill 44 (Small-Scale Multi-Unit Housing).
- The Finance: We don't just get you a mortgage; we structure a Construction Draw Mortgage specifically designed to fund the build of a 4-plex or 6-plex.
- The Exit: Once built, we refinance you into a CMHC MLI Select mortgage. This allows for up to 50-year amortizations, which can actually make a new build in BC cash-flow positive.
🏠 Strategy B: The "Alberta Pivot" (Calgary, Edmonton)
⚠️ The Challenge:
Prices in BC, even with the rate cut, still make it hard to find positive cash flow without massive down payments.
✅ The Solution: Move your equity to the Prairies.
I am processing a record number of files for BC residents who are leveraging their home equity here to buy in Calgary and Edmonton.
- Why Alberta? No land transfer tax (unlike BC's PTT), no speculation tax, and significantly lower entry points.
- The Play: You can pick up a detached home or a row townhouse in A-class neighbourhoods in Calgary for a fraction of the cost of a condo in Burnaby.
- The Finance: The beauty of the CMHC MLI Select program is that it is federal. We can use the exact same high-leverage, 50-year amortization strategy for multi-unit purchases in Alberta that we use in BC.
The "Hidden" Risk: Construction Draws
Whether you are building a laneway house in Kelowna or an infill project in Edmonton, the financing risk is the same: The Draw Schedule.
⚠️ Warning:
Nothing kills a project faster than running out of cash because the bank's inspector didn't approve a draw. I've seen developers lose $150,000+ in carrying costs just because their lending strategy wasn't aligned with their build timeline.
At Kraft Mortgages, we don't just hand you a rate sheet. I personally review your construction budget and align the lender's draw schedule with your contractor's cash flow needs. We ensure the money is there when the concrete is poured.
The Bottom Line
The rate is 2.5%. The window is open.
- If you stay in BC: Build density.
- If you want pure cash flow: Look East to Alberta.
Don't let the new taxes or the stress test scare you off. The opportunities are massive if you structure the debt correctly.
Are you debating between a BC Build or an Alberta Buy?
Let's look at the numbers together. Book a 15-minute strategy call with me, and I'll walk you through which market offers the best ROI for your specific profile.
Get Your Personalized Strategy
📅 Book Your Strategy Call with VarunKraft Mortgages
# 301 - 1688 152nd Street Surrey BC V4A 2G2
Serving Clients Across British Columbia and Alberta
Note: This post is for information purposes only and does not constitute legal, real estate, or tax advice. Please consult a realtor for property selection and a tax professional regarding your eligibility for BC Home Flipping Tax exemptions.
APR Disclosure: On a $500,000 mortgage with a 5-year fixed rate of 3.99% and a 25-year amortization, the APR is 4.02% assuming a standard closing fee. Rates are subject to qualification and market change.
About Varun Chaudhry
Licensed mortgage broker with over 18 years of experience in the Canadian mortgage industry. Specializing in MLI Select, construction financing, and self-employed mortgages across BC, AB, and ON.