market update: january 2019
(February 07, 2019
)
One year ago the federal government finalized the last step in a two year process that requires homebuyers to qualify at a mortgage rate 2% higher than the actual rate they can borrow at. The policy was put in place to help cool heated real estate markets in Toronto and Vancouver. Unfortunately, it was a blanket policy applied to the entire country when there certainly weren’t (and still aren’t), any heated markets in Alberta or most of the rest of Canada for that matter.






That policy has severely impacted the average Albertan’s ability to purchase a home. A large number of first time homebuyers no longer qualify and those that do have had their borrowing capacity reduced by as much as $80,000. And it’s not only buyers that have been impacted negatively. Slower markets caused by government manipulation drive prices down, effectively stripping homeowners of their equity. After all, their mortgage balances don’t drop when prices go down, only their equity does.
The government tells us it knows what’s best for us and is keeping us from getting too far into debt. Of all consumer debt, isn’t mortgage debt the very best kind? Home ownership is many Canadian’s sole savings vehicle and when they aren’t making mortgage payments, they are paying rent, and paying down their landlord’s mortgages instead. That’s a funny way to help out “average” Canadians. It’s time governments stop meddling and let free markets find their way.
RED DEER
To find out more, click the link below!
LACOMBE
To find out more, click the link below!
BLACKFALDS
To find out more, click the link below!
SYLVAN LAKE
To find out more, click the link below!
PENHOLD
To find out more, click the link below!
SUMMARY
Categories

- All Entries (138)
- Market Updates (7)
- Open Houses (4)
- Trends (1)
- Buying (0)
- Selling (1)
- Misc (11)
- Events (5)
- Neighbourhoods (2)
- Acreage Living (1)
- Timberlands North (1)
Archives
- December 2019 (2)
- November 2019 (1)
- October 2019 (4)
- September 2019 (3)
- August 2019 (4)
- July 2019 (1)
- June 2019 (3)
- May 2019 (6)
- April 2019 (6)
- March 2019 (7)
- February 2019 (3)
- January 2019 (6)
- December 2018 (6)
- November 2018 (2)
- October 2018 (1)
- September 2018 (3)
- August 2018 (5)
- July 2018 (2)
- June 2018 (5)
- May 2018 (5)
- April 2018 (5)
- March 2018 (4)
- February 2018 (5)
- January 2018 (3)
- November 2017 (1)
- October 2017 (5)
- September 2017 (6)
- August 2017 (7)
- July 2017 (9)
- June 2017 (8)
- May 2017 (6)
- April 2017 (2)
- November 2016 (1)
- October 2016 (1)