The government's new mortgage rules are now in effect. So how are they effecting the Canadian real estate? Of course it may be far too early to tell exactly what the fall out for new mortgage rules will be but right now all experts are still positive. One leading Alberta builder recently told the media that no ill effects are expected in the aftermath of the new changes. Recent data from the Alberta Real Estate Association continues to show the province's real estate market improving and in fact posting some of the best numbers in 5 years. TD Bank has been bold enough to claim Canadian commercial real estate is now primed for growth with a new surge in construction expected between 2013 and 2014. However, it may be a little foolish to believe that hampering the ability of Canadians to buy homes won't affect the national real estate market, especially if interest rates rise. It is good to remain upbeat but perhaps a little unfair not to prepare Canadians for the reality of the threat. If they are prepared at least they can make wise financial moves and minimize the damage. The bottom line is that moves like these, together with rapid rate increases, is exactly what exaggerated the U.S. real estate crash. Of course it does appear that a variety of factors may keep Alberta insulated from any negative side effects but our eastern provinces are unlikely to be so lucky. On the upside for those investing in commercial real estate in AB the struggles of the east will only drive more flight capital and migration westward, driving up demand and the value of properties as the entire globe scrambles to get a slice of one of the only strong real estate markets and investment vehicles left.