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).
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).
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