My husband and I purchased our home in 2015. Both of us had stable jobs and a household income over $200,000. We also owned a rental property which we were allowed to use 100 per cent of the verified rent in order to help us qualify. We purchased our home in Calgary for $690,000 with five per cent down. Now today we are considering moving to a different community as a major highway is being developed behind our home. With the new rules imposed in 2016 and also previously regarding use of rental income and increasing down payment over a purchase price of $500,000, we now can’t even qualify for the same priced home. This despite the fact that we have been making mortgage payments for almost three years and we both still have the same jobs earning even more income. Further we would have to put a larger down payment on our purchase then required to three years ago, eating up the equity we could use to pay off our higher interest debt which is effecting us much more negatively then a potentially larger mortgage. This change thereby also negatively impacts the real estate industry as we can’t sell and buy even in a lateral move due to not being able to qualify for the same priced property.
Given the new rules when our mortgage renews, we will only be able to select certain lenders who will allow us to qualify under the old rules, providing us less choice in a supposedly free market which is very frustrating.
I’m also a mortgage broker by profession and these rules have negatively impacted many of my clients, causing our revenues as professionals to decrease. The sad part is many new home owners are forced out of the market place and required to rent for longer, wasting hard earned money that would be much better spent on building equity. The government should consider placing restrictions on banks being able to lend unsecured credit, which is the ultimate killer for people getting into debt and leave mortgages alone.