Tag Archive: mortgage stress test


Late Breaking News from OSFI on its New Stress Test

Important Clarifications… Here’s more of what you need to know about the new stress test rules, straight from the regulator: On the Need to Act Now 25.6% of uninsured mortgages originated between July and December 2020 had a “qualified TDS” above 43%, OSFI says. 44% is the limit, and for a healthy market you really want to see that number...

New Uninsured Mortgage Stress Test Starts June 1

Here’s the latest on what we know about the banking regulator’s new mortgage stress test proposal… 12:10 p.m. ET Update OSFI has proposed a tougher minimum qualifying rate for uninsured mortgages. As planned, it will be the higher of: the mortgage contract rate plus 2%, or a 5.25% floor rate That 5.25% floor is 0.46%-pts higher than the current minimum...

OSFI Resumes Its Stress Test Review

For those who think the 4.79% minimum qualifying rate (mortgage “stress test” rate) is too strict, here’s a breaking update. Tweaks to the often-criticized “stress test” are back on the table. OSFI said today that it “will resume its policy work on the minimum qualifying rate for uninsured mortgages by issuing a new consultation tomorrow at noon (ET).” “OnJanuary 24,...

Government is Still Roadblocking First-time Home Buyers: Viewpoint

The Feds would like you to think they want to help first-time buyers. The Liberals’ over-hyped and costly First-time Home Buyer Incentive is a case in point. “The First-time Home Buyer Incentive makes it easier for you to buy a home,” they say. What the government omits to mention is that it’s stood by and allowed the mortgage qualifying rate...