This is something good to read that the Mortgage Broker Industry is stepping up and voicing the frustrations we all are feeling. Read on to see what the tweak is all about.
Mortgage Professionals Canada has renewed calls for changes to the federal government’s stress tests, arguing they pose serious risk to the housing market and overall economy.
The association’s annual report on the state of the mortgage market, authored by its Chief Economist Will Dunning, followed up on previously published concerns over the federal government’s mortgage stress tests.
It noted that housing markets across Canada slowed significantly in 2018 due to a combination of higher mortgage stress tests, higher interest rates and other policy changes that have “constrained” home buying.
The report notes that resale activity fell an annualized 11% in 2018 and was down 15% from the all-time high in 2016.