On May 7, Chestermere City Council passed a motion calling for Mayor Marshall Chalmers to write a letter to the Prime Minister, and Minister of Finance to review B-20.
The B-20 public policy bill created stress test, which applies to anyone s qualifying for a mortgage loan and ensures homeowners can afford payments.
“The total value of new mortgages in 2018 dropped by 28 per cent,” said Chestermere Chief Administrative Officer (CAO), Bernie Morton.
The general census from real estate experts, bankers, and home builders is there needs to be flexibility for people to purchase a home, Morton said.
Calgary has adopted a notice of motion which urgently requested that the Prime Minister, and Minister of Finance review this policy with specific attention to the negative impacts, the stress test, and request the provincial government to intervein.
“We are trying to secure allies for this particular resolution and policy shift and change request,” Morton said.
Requesting for a policy review should provide support for those families and individuals trying to secure a mortgage and have had the dream of home ownership thwarted.
“In our community with a financially attainable housing plan, this policy may serve to support our growth,” Morton said.
Mayor Chalmers said that the policy review request is another part of the puzzle to assisting the community.
“We are under serious constraint by the stress test. We have many people looking to get into a home and can’t get there. I’m in full support of assisting our neighbours,” Chalmers said.
The request is to write to those who are responsible for the induction and the development of this public policy initiative, and to say there have been unintended consequences, Morton said.
“Home ownership is almost impossible for those who are not extremely wealthy, have multiple lines of savings, or have made investments,” Morton said.
He added, “The Canadian dream of home ownership is rapidly slipping away because of this public policy, not because of people’s incomes, and the savings they have.”
Chestermere City Councillor Laurie Bold disagreed that reviewing the B-20 policy will make a difference to the real estate market.
“Getting rid of the rules and regulations of the stress test is not going to make the market better. The economy is what the economy is,” Bold said.
Bill B-20 was initially created as a result of the real estate markets in Vancouver, and Toronto.
“The housing situation in Toronto and Vancouver is a real estate anomaly,” Morton said.
He added that B-20 was put in place to address those unique concerns. However, the nation-wide impact is a cause to rethink the policy.
