As I am sure all of you have heard that federal government has instituted another hurdle to clear when qualifying for a mortgage called the Stress Test which basically tests whether the borrower can continue to make payments if interest rates rise. This was to deal with issues in the Toronto and Vancouver markets. Unfortunately, it has some ill effects on the markets in other parts of the country.
Earlier this week Calgary City Council passed a Notice of Motion requesting that the Calgary Mayor write letters to the Prime Minister and Minister of Finance for a review of the effects of B20 and also to the Alberta Premier and Minister of Finance advocating that Alberta Credit Unions and ATB Financial consider adopting Alberta based mortgage approval requirements.
The net effect of adopting an Alberta based mortgage approval requirements by these entities could put real pressure on the chartered banks to pressure the federal government to add regional requirements instead of flat out across Canada.
This could be a real help to first time home buyers!