The objective of that policy is to reduce mortgage lending. It means that a potential home buyer who can comfortably afford the costs of buying a home (based on their actual mortgage interest rate, which will usually be less than three per cent) might not be able to get financing, because of a new, very high "stress-test" hurdle (using an interest rate that is currently 4.64 per cent, and far above actual market rates).
Economist, specializing in analysis of the housing and mortgage markets
Will has been analyzing housing markets since 1982. He operates a one person consulting company, and works for a variety of clients in government, the home building industry, financial services, and non-governmental organizations. Major clients include two associations (Mortgage Professionals Canada and the Canadian Home Builders Association).
SUBSCRIBE AND FOLLOW