Ottawa and a federal banking regulator are planning to introduce changes to the mortgage stress tests by April, a move which could make it potentially easier for would-be homebuyers to get mortgages.
The changes, which will take effect on April 6, are aimed at adjusting the benchmark rate, or “floor,” that is used for the stress test to ensure borrowers can continue to repay their loans if there is a change in conditions, such as an increase in interest rates. Following a review, both the federal government and OSFI said the floor had fallen out of step with actual housing market conditions, and will now be adjusted.
Currently, the benchmark for the tests is published by the Bank of Canada, based off the posted five-year conventional mortgage rates that are offered by the country’s six biggest banks. The new benchmark for the tests will be a weekly, five-year rate calculated by the Bank of Canada and based on mortgage insurance applications, plus another two percentage points.
“The government will continue to monitor the housing market and make changes as appropriate,” Morneau said in a press release. “Reviewing the stress test ensures it is responsive to market conditions.”
Are the Liberals worried they may not get voted back in power? They should be!
When you can't create real growth, you inflate the bubble. No more tools. Sens cdnpoli CRTC TrudeauMustGo
Bubble.
Very misleading title, it is not established weather or not if this change will make it easier or not. Can someone prove me wrong
🙄hey Bill_Morneau you and Liberals caused this problem. You’ve ruined 5 years of real estate in Canada, all to deal with two overheated markets.
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HuffPost is now a part of Verizon MediaI think the criticism comes from all Canadians. Damn...back to Canada in the winter! And I have to actually do something? S$it... I see that some major corporations are starting to speak up against Trudeau's governance. Undoubtedly, jeopardizing millions and millions of political donations.. Environmentalists don't make million dollar political contributions to or the liberal_party
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