Is it time to review Canada's mortgage stress test? This economist thinks so - BNN Bloomberg

  • 📰 BNNBloomberg
  • ⏱ Reading Time:
  • 22 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 12%
  • Publisher: 50%

Loans Loans Headlines News

Loans Loans Latest News,Loans Loans Headlines

Amid heightened interest rates and a diminished probability of another series of hikes from the Bank of Canada, one economist says it is time for the federal government to review its mortgage stress test.

Despite the falling probability of another series of rate hikes from the central bank, Hogue said that policymakers will likely look to “maintain a high degree of stringency” to keep systemic risks to a minimum amid economic uncertainty. was initially put in place in 2018 as a way to sure up mortgage underwriting practices against concerns regarding rising home prices and high household debt.

“This rate has frustrated potential homebuyers with less than stellar borrowing credentials—some of whom are no longer able to get a mortgage from federally-regulated lenders . It’s also impacted stronger borrowers by reducing the maximum size of mortgage they qualify for,” said Hogue. “Clearly the stringency of the test has significantly increased. Has it become overly stringent in the current circumstances?” he questioned.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Yes. Increase it!

Yeah they did review it, and they left it unchanged! Haha

In 2020-2021 people bought houses based on CERB and EI while they were unemployed so worst time is coming for banks so stay away from bank stocks

Despite of mortgage stress test people borrowed money by manipulating income & fraud by mortgage broker in 2019-2021 to n low rate environment and banks never checked or confirm income and give money so mortgage stress test was not working against fraud

Yup, time to bolt the barn door

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 83. in LOANS

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

What mortgage owners need to know about the Bank of Canada hike - BNN BloombergThe latest Bank of Canada interest rate hike could leave some Canadians looking to adjust their mortgages, according to one mortgage broker. First mortgage broker has to work honestly, they have connection at underwriter at big banks so mortgage brokers and realtor all doing fraud to approve mortgage it was done lot in 2020-2021
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Interest rate rises 50 points as Bank of Canada hints end near for hikesThe Bank of Canada on Wednesday hiked its benchmark overnight interest rate by 50 basis points to the highest level in almost 15 years.
Source: calgarysun - 🏆 63. / 52 Read more »