Quote:
Originally Posted by bizaro86
The only way we can have lower mortgage rates in AB than everywhere else is with government money. A guarantee from the Alberta govt is not as good as the existing guarantee most mortgages have from the Canadian government (via CMHC) so adds 0 value and wouldn't lower interest rates for Albertans. I guess they could build an Alberta version, get licensed, and charge lower fees than cmhc. That would help Alberta buyers a bit but not lower interest rates.
There are 2 ways to lower interest rates, and as someone who believes the correct interest rate for the AB economy is often different then for Canada as whole I would support neither of them:
1) the AB government lends money for mortgages at a lower-than-market rate, either directly or by buying mortgages as low rates from banks
2) the AB government directly subsidizes mortgage interest, either with payments to borrowers or lenders.
Those are the only 2 choices, they're equivalent, and they both suck.
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Assuming there's actually some kind of coherence in what she's thinking/saying (which is a stretch), I'd assume she'd be wanting to make it so people in Alberta don't need to meet the stress test and/or have looser GDS/TDS standards.
So the actual rates paid wouldn't be any lower, but people would qualify for more money. How that helps anything, I have no idea though.