The current stress tests that are being used make no sense under the current conditions of the economy. The tests should reflect what is possible in the current climate as it stands now. Many people aren’t buying homes in Canada because they can’t get the rates that they want. The only way to curve this is to change what those are so that more Canadians will start buying homes and the industry can find its footing again.
- One expert wonders why the stress test couldn’t be 5-year fixed plus 1% or simply 10-year fixed.
- The Vancouver mayor is worried that so many homeowners in his city are unable to pay their mortgages.
- Local governments face large deficits and may need to take drastic measures in response.
“Market analysts have said that getting more Canadians to participate in homebuying would benefit the economy every step of the way until it regains its footing.”