Kara is a chartered accountant who recently moved to Edmonton and watched her purchasing power drop by $55,000 under the new mortgage qualifying rate. In 2014, Kara bought her first home at a purchase price of $350,000. Today, she is more established in her industry and taken a higher paying job yet can only qualify for a mortgage of $320,000. In Edmonton, $320,000 doesn’t get you the same as a purchase price of $350,000 where she was moving from.
The situation has forced Kara to look at condos, which after factoring condo fees, further reduces her purchase price. Her new budget is now $275,000.
Kara is left wondering how three years later with a better job, she qualifies for less.