stress test

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.

Brokers react to the government’s “nonsense” mortgage charter

November 29, 2023 2 Comments

The Liberal government last week unveiled a “new” Canadian Mortgage Charter aimed at ensuring lenders offer relief to mortgage borrowers who are struggling to make their payments.

Surprise at news about insured mortgage switches

OSFI report reveals largely unknown mortgage exemption: no stress test on insured switches

October 20, 2023 No Comments

Many in the mortgage industry reacted with surprise after learning about a little but very important nugget buried in an OSFI report released earlier this week.

OSFI shelves some of its regulatory proposals in response to stakeholder feedback

October 16, 2023 No Comments

Canada’s banking regulator confirmed today that it will no longer pursue at least several of the proposed mortgage regulations it had introduced earlier this year after they were met with widespread concern and criticism during its public consultation period.

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.

OSFI comments on mortgage amortization extensions_med

OSFI says mortgage amortization extension “not without risks”

April 14, 2023 No Comments

Temporarily extending amortization periods has been a saving grace for many variable-rate mortgage holders as a way to manage the impact of higher interest rates

Is Canada’s mortgage stress test still relevant?

August 21, 2022 2 Comments

Earlier this month, the Bank of England scrapped its mortgage affordability stress test. With mortgage rates presumably approaching their peak for this rate-hike cycle, some are wondering if changes to Canada’s stress test are overdue.

Mortgage stress test impacting qualification amounts

How the mortgage stress test is impacting qualification amounts

June 20, 2022 No Comments

As of June 2022, we are currently seeing unnatural discrepancies in the size of mortgage loans borrowers will qualify for, and it’s all because of

Concerned about a higher mortgage stress test

The Mortgage Stress Test Has Already Increased for Some Borrowers

March 22, 2022 1 Comment

All eyes have been on the Bank of Canada’s rate tightening and its impact on variable mortgages, but now there are fresh concerns given the flurry of recent increases to 5-year fixed mortgage rates.

Minimum Qualifying Rate for Both Mortgage Stress Tests Left at 5.25%

December 17, 2021 No Comments

As part of its annual review of the stress test for uninsured mortgages, the Office of the Superintendent of Financial Institutions today confirmed the minimum