Pineapple Financial Positioned for Strategic Growth as Canadian Mortgage Rule Changes Ignite Market Opportunity

Toronto, Ontario–(Newsfile Corp. – September 24, 2024) – Pineapple Financial (NYSE American: PAPL) – With the recent reforms to Canada’s mortgage rules, the real estate market is poised for a resurgence in activity, offering significant growth opportunities for Pineapple Financial. The government’s initiatives to increase accessibility for first-time buyers and support move-up buyers, alongside the rise of insured mortgage limits, signal an environment ripe for expansion. These reforms align with Pineapple’s strategic focus on providing innovative mortgage solutions, positioning us to capture market share and drive growth in the coming quarters.

New Mortgage Rule Changes: A Catalyst for Market Growth

The Canadian government’s recent reforms include two pivotal changes that are set to unlock demand across key buyer segments:

1. Introduction of 30-Year Amortizations for First-Time Buyers and New Builds

• Starting August 1, 2024, first-time buyers can now access 30-year amortization products for new builds, expanding to all homes by December 15, 2024.
• This extension dramatically reduces monthly payments, addressing one of the largest affordability barriers for younger buyers, including Millennials and Gen Z.
• With the recent rise in property prices, this measure provides critical relief to potential buyers, enabling them to enter the market even as home values remain high.

2. Increase in Insured Mortgage Cap to $1.5 Million

• The insured mortgage limit has been raised from $1 million to $1.5 million, providing a vital boost for move-up buyers looking to transition into larger homes to accommodate growing families.
• With housing prices stabilizing or declining slightly in key markets like Toronto and Vancouver, this increase allows move-up buyers to bridge the gap created by declining home equity without the burden of a large down payment.

These reforms reflect the government’s strategic intent to alleviate housing pressures and stimulate market activity, with positive ripple effects across the real estate ecosystem.

How Pineapple Financial is Positioned to Capitalize on Market Changes

Pineapple Financial is uniquely positioned to benefit from these reforms. Our advanced data-driven mortgage platform, PineappleONE, is built to handle a rapidly evolving market landscape, providing our agents with powerful tools to engage both first-time and move-up buyers effectively. Here’s how we plan to drive growth:

1. Expanding Our Reach to First-Time Buyers

• The new 30-year amortization products align with Pineapple’s focus on delivering tailored mortgage solutions to younger, tech-savvy buyers. With PineappleONE’s seamless digital experience, we provide this emerging segment with personalized options to navigate the new landscape and secure homeownership.
• Our platform’s real-time data insights allow us to target and engage first-time buyers who are now better positioned to enter the market, ensuring that Pineapple captures a larger share of this crucial demographic.

2. Empowering Move-Up Buyers

• Move-up buyers represent a significant growth opportunity. Pineapple’s analytics tools allow us to pinpoint existing homeowners whose equity may have been impacted by recent market adjustments, offering customized solutions that take advantage of the increased insured mortgage cap.
• Our refinancing products will play a key role in helping this segment transition to larger homes, which also frees up inventory for first-time buyers-an essential element in creating a fluid, dynamic housing market.

Growth Potential in the Canadian Real Estate Market

The demand for housing in Canada remains robust, driven by the following macroeconomic factors:

• Population Growth: Canada’s population has been growing steadily, with immigration continuing to drive demand for housing. The federal government’s target of welcoming over 1 million new immigrants by 2025 means the real estate market will need to expand to meet this demand.
• Housing Supply Shortages: Despite price corrections in certain markets, Canada is facing a significant housing shortage, particularly in urban centers. The government’s recent reforms aim to increase housing supply through new builds, which aligns perfectly with Pineapple’s ability to finance and facilitate these transactions.
• Rate Stability: As the Bank of Canada moves towards more stable interest rate policies, housing affordability will improve, encouraging more buyers to act. Pineapple’s portfolio of adaptable mortgage products allows us to offer competitive solutions as the cost of borrowing stabilizes.

Pineapple’s Competitive Edge

• Tech-Enabled Scalability: PineappleONE, our proprietary platform, equips brokers with a fully integrated digital suite, allowing us to scale operations and capture market share in an efficient, tech-driven way. With over 700 agents utilizing the platform, we are primed to increase productivity and close rates in response to rising demand.
• Data-Driven Decision Making: Our investment in data analytics provides us with unparalleled insights into market trends, buyer behavior, and mortgage renewals. This allows us to target high-opportunity segments with precision, enhancing both acquisition and retention.
• Broker Network Expansion: As we grow our agent network, Pineapple Financial will continue to attract new talent through our unique value proposition, helping us further penetrate the market and deliver strong results to shareholders.

The recent mortgage reforms mark a significant turning point in the Canadian real estate market, and Pineapple Financial is ready to capitalize on this opportunity. As demand for both first-time and move-up buyers grows, our technology-driven approach, combined with our deep market expertise, positions us to deliver value across the board.

With an expanding product suite, scalable tech platform, and a strong pipeline of clients, Pineapple is on track to become a leading force in the evolving Canadian mortgage landscape.

About Pineapple Financial Inc.

Pineapple Financial Inc. is an award-winning fintech and leading Canadian mortgage brokerage network, focusing on both the long-term success of agents and brokerages, as well as the overall experience of homeowners. With approximately 700 brokers within the network, Pineapple creates cutting-edge cloud-based tools and AI-driven systems to enable its brokers to help Canadians realize their dream of owning a home. Pineapple is active within the community and is proud to sponsor charities across Canada to improve the lives of fellow Canadians.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements, including, but not limited to, the Company’s proposed Offering. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs, including the expectation that the Offering will be successfully completed. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and the completion of the initial public offering on the anticipated terms or at all, and other factors discussed in the “Risk Factors” section of the registration statement filed with the SEC. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC. Additional factors are discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov.

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