Mortgage Broker News
The Toronto Real Estate Board says B-20 needs to be “revisited” because, in addition to stymieing eager and otherwise qualified buyers, it’s harming the Canadian economy.
The CEO of TREB credited the government for taking action on key housing files, but admonished one of its agencies for implementing a stress test that, combined with rising interest rates, is disastrous for both buyers and the economy.
“One area that needs to be revisited is the imposition of the OSFI-mandated two percentage point mortgage stress test,” John DiMichele said in a statement. “While we saw buyers return to the market in the second half of 2018, we have to have an honest discussion on whether or not today’s homebuyers are being stress tested against rates that are realistic. Home sales in the GTA, and Canada more broadly, play a huge role in economic growth, job creation and government revenues each year. Looking through this lens, policymakers need to be aware of unintended consequences the stress test could have on the housing market and broader economy.”
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