I was just reading Christopher Alexander’s article on stress testing potential home buyers out of the market and it is putting stress on sellers also. He is right. The government has to find ways to give incentives to help first-time buyers.

If this country would start a universal basic income there wouldn’t be the need for everyone to crowd into our two or three high-priced cities where all the jobs are and be enabled to move to lower cost rural areas as well.

Sadly, it’s mostly offshore money that is buying the properties here.

Michael Smith
Richmond, B.C.


  1. But OH NO…..the government is making sure right now, that first time home buyers, just don’t exist. What with all the mortgage rules, how can they possibly buy? In fact I’m surprised anything is selling at all

  2. Obviously property values need to come down. That is usually what happens in a market cycle. Values have dropped in many markets and should continue to do so as sales struggle. Values increase in increments over a long period of time. We have seen a continual increase in real estate values the past twenty years. Values decrease in the same manner. They will decrease in increments over a period of time. Sales continue as there are still people that need to buy and people with enough money that want to buy. But the majority are not jumping into the market place. The stress test is how the BOC can raise interest rates to bring values down. The balance act is because consumers are carring too much debt. The biggest being a secured line of credit. Consumers seem to be managing this debt by paying interest only. An actual increase in interest rates could be a disaster for many consumers.The Banks are doing everything they can to try and keep values high enough so that if a home owner walks away they can at least recover the amount of debt. I am sure there are many sellers that would like to sell but have little to zero equity in thier properties. Where do people think all the money to pay for home reno’s, landscaping projects and luxuries of life has been coming from? Lines of Credits. Basic income is not a solution to our current problems. Right now people can move to less expensive markets in Canada but people want to stay near the big cities. Unfortunately Canada only has two big cities with a reasonable climate to live in.

    • There is not a REALTOR in Canada who even understands how house prices rise and fall. Not one.

      Go ahead and Google it!

      • I am curious why every single one of your comments is so combative. If you are so convinced you are right, why not post the link ? I actually googled you and all I get is “REM” comments. Who are you ? What makes you think you are so much more superior than the rest of us ?

  3. The concept put forward By the Liberal Finance Minister was TOO complicated in that CMHC people need to approve the loans made to reduce mortgage costs for a good period. This means there is a third party involved in a mortgage approval. Why not simply reduce the stress test for new Home Buyers for Purchases up to $450,000 by only adding 1% to the mortgage approval process and not the existing 2% addition.
    Right now Buyers have to be approved at say 3.3% plus 2% for a five year term even though they may want a 3 year term or variable rate

  4. Just get rid of the stress test and let the market do it’s own leveling that it has done for 50 years.The federal policy has eroded Canadians retirement funds in there homes.
    I keep hearing Canadians earning $1.00 are spending $1.60 and the media blames mortgages. We have the most stringent qualifying rules in the world. It’s not mortgages , It’s easy access to credit and credit cards. Let’s make people quality for credit based on income and not credit score. It’s asinine to have the government put money into buyer programs when all they have to do is got rid of the stress test.


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