Tweaking stress test rate doesn’t use all the tools available

Robb NelsonMortgage Talk Canada

By: Myke Thomas The B-20 mortgage qualifying stress test will be tweaked as of April 6 and, not surprisingly, the bureaucracy is strong in this one. As it stands now, the stress test requires all borrowers to qualify for mortgages based on the greater of the five-year benchmark rate published by the Bank of Canada or the contractual mortgage rate from … Read More

Is the Mortgage Stress-Test Rate About to Drop?

Robb NelsonMortgage Talk Canada

Monday Morning Interest Rate Update for February 10, 2020 by David Larock Last week TD Bank lowered its posted five-year fixed rate from 5.34% to 4.99%. You might be wondering why this is worth writing about because the Big Six banks don’t actually lend at their posted rates. Instead, those rates have primarily been used to significantly inflate the size of … Read More

Policies should focus on housing supply, not on stress test

Robb NelsonMortgage Talk Canada

by Ephraim Vecina Amid the considerable market impact of the B-20 regulations, multiple observers and industry organizations have called for revisions of the mortgage qualification stress testing, but the chief of the Bank of Nova Scotia has argued that such changes would not address the root of the nation’s housing crisis. Scotiabank president and CEO Brian Porter recently said that what policies should … Read More

The Bank of Canada’s Cautionary Comments Push Fixed Mortgage Rates Lower

Robb NelsonMortgage Talk Canada

by David Larock The Bank of Canada (BoC) left its policy rate unchanged last week, as widely expected, and that means variable mortgage rates will remain at their current levels for the time being. The Bank also issued its latest Monetary Policy Report (MPR), which provides us with its quarterly assessment of economic conditions both at home and abroad. The January MPR, … Read More