to consider recommendations for making the mortgage stress test “more dynamic,” following widespread criticism of the test from the nation’s realtors, but also concerns that easing it could lead to riskier borrowing.
Critics of the stress test have said that, while it takes risk off the table in frothy markets like Toronto and Vancouver, it can block potential buyers in more reasonably priced markets.During the federal election campaign, the Liberals’ platform did not include any mention of reviewing or amending the stress test.
The test is intended to gauge whether home buyers can afford their mortgage payments at higher interest rates. While it is widely cited for improving the credit quality of mortgage borrowers, the stress test also contributed to a slowdown in real-estate activity.
globebusiness Why? To put people in a more precarious position than they already are. Leave it alone.