Adam and Kate are a young couple in their late 20’s who recently moved to Alberta from Ontario.

Adam works in the construction industry and his wife Kate provides private nanny care for a family in Red Deer.

They have been working hard to save up money for a down payment and approached a mortgage broker in the summer to start their pre-approval. They were looking for a modest price point, about $300,000, to get into a starter home in the city of Red Deer.

Due to the nature of the way Kate was paid by her employer, she required a two-year history of earnings before lenders would consider using her income on the application, so the entire file was based on Adam’s income.

They were very close to qualifying on his income alone, but they had some debt they needed to pay down in order to qualify. They used part of their saved down payment to pay the debts off and continued to save up over the next few months to have enough for their required down payment and closing costs in order to move forward.

During this time the government had announced the rule changes and when Adam came back, ready and excited to move forward on his purchase, he was met with the news that he will now only qualify for a $240,000 price instead.

They must now either purchase a much more inexpensive property, or wait a full two years before getting into the market, due to the nature of Kate’s income.