In the 1990s, mortgage insurers implemented a policy change regarding the insurance of post tension cable buildings. This decision has had a lasting impact on the construction practices and real estate market in Calgary. In this blog post, we will explore how this long-standing policy affects both buyers and sellers of post tension cable buildings in the city.


Insurer's decisions to not insure buildings with post tention cables began in the 1990s and has significantly influenced the landscape of post tension cable buildings in Calgary. It is essential to consider this when evaluating the implications for buyers and sellers in the present day.


Higher Down Payments and Financing Challenges:

As a result of the CMHC's policy, lenders often require higher down payments from buyers of post tension cable buildings. This increased financial burden can make it more challenging for potential buyers to secure financing, limiting the pool of eligible purchasers and potentially reducing demand for these properties.


Maintenance Requirements and Cost Considerations:

Post tension cable buildings require ongoing maintenance and periodic engineer reports to ensure the integrity of the cables. These additional requirements can incur extra costs for owners, further impacting the affordability and attractiveness of these buildings.


Market Perception and Pricing Dynamics:

This has shaped the market perception of post tension cable buildings in Calgary. Buyers may approach these properties with caution due to the associated risks and uncertainties. As a result, the demand and pricing dynamics for post tension cable buildings may differ from other types of construction in the city.


Seller Considerations and Market Competition:

Sellers of post tension cable buildings face the challenge of finding buyers who are willing to navigate the financing requirements and maintenance obligations. The smaller pool of eligible buyers may lead to longer listing periods and increased competition among sellers. Although these buildings are often less pricy and may be perfect for a buyer who does not require a mortgage insurer. 


Navigating the Landscape:

Buyers and sellers should be aware of the impact of these decisions on post tension cable buildings in Calgary. Seeking guidance from professionals, such as real estate agents and speaking to your lender with expertise in these types of properties, can provide valuable insights and assistance in navigating the market.


These changes from the 1990s regarding post tension cable buildings has had a lasting impact on the real estate market in Calgary. Higher down payments, increased maintenance requirements, and altered market dynamics are key considerations for both buyers and sellers. Understanding the context and implications of the insurer is crucial when making informed decisions in the post tension cable building market in Calgary.