stress test for uninsured mortgages

OSFI rejects Competition Bureau recommendation to drop mortgage stress test for lender switches

March 22, 2024 1 Comment

Canada’s banking regulator says it has no plans to remove the stress test on uninsured mortgages for borrowers who choose to switch lenders.

Canada’s mortgage stress test: Obsolete or still doing its job?

August 14, 2023 No Comments

Originally introduced to mitigate borrower default risks in the event of rising interest rates, some brokers now argue that Canada’s mortgage stress test is no longer needed with interest rates presumably near their peak.

A deep-dive of the mortgage stress tests

A deep-dive into the mortgage stress tests (Part 2): They’re necessary, but the design is flawed

September 29, 2022 1 Comment

This is the second in a two-part series exploring the impact the mortgage stress tests had on borrowers and some additional and unintended risks they have brought about.

A deep-dive into the mortgage stress tests (Part 1): Did they serve their purpose?

September 27, 2022 1 Comment

In this two-part series, economist Will Dunning explores the premise of the mortgage stress tests and their current relevance in the context of today’s sharply higher interest rates and worsening economic conditions.

The latest in mortgage news: OSFI has no plans to loosen the stress test

September 14, 2022 1 Comment

Despite today’s mortgage borrowers having to qualify at rates in excess of 6% and 7%, Canada’s banking regulator said no changes to the stress test are imminent.

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