[troutman]

Councillor wants local approach to mortgage rules over national 'stress test'

https://calgaryherald.com/news/local...al-stress-test

A notice of motion being presented this week which asks Ottawa and the province to consider the adoption of a regional approach to lending rules, over the current “mortgage stress test,” is earning some support among councillors.

The motion — being brought forth by Coun. George Chahal.

It [stress test] “was created to deal with the unstable real estate markets in Vancouver and Toronto where red flags have been raised in recent years regarding the combination of unsustainable price appreciation and high-debt ratios,” Chahal’s notice of motion states.

But he pointed to “unintended consequences” outside those cities, including the slowing down of Calgary’s real estate market. There was also a reduction in construction and development which led to fewer jobs, an overall drop in Calgary homeowners’ property valuations, and a lower GDP, the notice of motion states.

“If you’re attempting to apply a single rule across the board because of a few situations that may not apply across Canada, then certainly we should be able to look at it slightly different in this regard.”

United Conservative Party leader Jason Kenney said that if his party is elected this spring, he’d call on Ottawa to eliminate the stress test.