In Port Moody B.C., Ryan has been a firefighter with the local fire department for five years. He makes $94,000 per year and the only personal debt he has is a truck payment of $416 per month and a $10,000 RRSP loan payment of 1,645.00 per month. This loan will be paid out from his tax refund. His common-law wife is a teacher taking a two-year sabbatical to obtain her master’s degree in education at Simon Fraser University. Her student loans and recent minimal income have made her a bigger liability to the mortgage, and she cannot be included.

They have been renting a condo in Port Moody that the owner is now selling, and they would like to purchase it. The purchase price for an entry condo in the Port Moody area is now in the $500,000 range, and using his five per cent down payment, he does not qualify based on the stress test rate. Using the new Home Buyer’s program (HBP) does not help him because the payments are based on the same higher qualification rate.

These are two government workers, in the public service industry, that cannot afford a mortgage due to the tightening of the government rules. Allowing for posted rate qualification for the five-year term, or lengthening the amortization period would have helped this wonderful couple get into a market that is continuing to go up in price.