Bryan and Tracy C. live in Calgary and want to downsize their home. The plan was to sell their current house, use equity to pay off debts and buy something smaller.

While they were burdened with debts, they had a good 20 per cent equity in their home. After paying off most of their debt with the equity they earned and accumulated, they would have been able to put down five per cent for a smaller much less expensive home. That way, they could breathe easier for the next two years until their youngest enters school and mom can go back to work full-time and add more income. Under the former rules, this was possible with a five-year fixed term under the contract rate. But with the new rules, this pushes them into the condo market with strata fees that put them no further ahead. They most likely will be pushed out of the housing market.