Tag Archive: stress test


Industry Leader Calls for Stress Test Fixes Now

—The Mortgage Report: June 29— Stress Test Fix Overdue: Ottawa was sensible to pause the mortgage stress test changes “given the marketplace uncertainty in March,” says Paul Taylor, President and CEO, Mortgage Professionals Canada (MPC). “However, as we begin to open businesses again, and as economists are generally expecting a housing price downturn, now is the time for OSFI and...

Internal Emails From OSFI Document its Stress Test Tweaks

—The Mortgage Report: June 25— OSFI Unplugged: Alberta MP Tom Kmiec has obtained internal emails from OSFI that chronicle the regulator’s efforts to improve the mortgage stress test—in particular its efforts to “fix” the minimum qualifying rate (a.k.a., “MQR” or benchmark rate). The emails show that OSFI’s PR staff wanted the public to know it was making “efforts to get...

Mortgage Deferral Warnings

The Mortgage Report – June 12 Deferrals Appearing on Credit Reports: Credit bureaus are alerting lenders when you’ve requested a payment deferral. If you’ve deferred your mortgage, Equifax says you should see one or both of these statements in the comments section of your credit report: Deferred Payment Affected by Natural or Declared Disaster Mortgage deferrals aren’t supposed to hurt...

One Way to Get a Mortgage Without *the* Stress Test

The Mortgage Report – May 26 Stress Test Exception: Here’s a tip for renewers. If: A) you want to switch to a new lender at renewal, and B) your mortgage closed before October 16, 2016, and C) you haven’t refinanced since… …then some lenders let you qualify at their best 5-year fixed rates instead of at the government’s “stress test” rate (which is...

The Stress Test Rate Drops Further

The Mortgage Report – May 16 Now to 4.94%: Scotiabank trimmed its posted 5-year fixed rate to 4.94% on Saturday. That puts the mode average of the Big 6 Banks’ 5-year posted rates—and hence the minimum stress test rate—at 4.94%. Of note: This is the lowest the stress test rate has been since October 2017 The all-time low was 4.64%,...

Stress Test Rate to Drop Next Week

Mortgage Report – May 14 De-Stressing: Call out the marching band, BMO’s posted 5-year rate cut today should ease the government’s mortgage “stress test,” effective next week. As it stands, the minimum stress test rate will likely fall from today’s 5.04% to 4.99%. It’ll mark the first time since January 2018 (when OSFI’s stress test began) that this benchmark rate...

Diving Bond Yields. The Stress Test Effect.

Bond yields are plummeting globally as the coronavirus spreads to South Korea (833 cases), Italy (215 cases) and Japan (154 cases), among other countries. Media outlets are increasingly using the “P” word (pandemic), and the more they do, the more yields will drop. Even though we have just 9 cases so far, Canada is not an island in this crisis....

2020 Mortgage Stress Test: More Lift for Housing

Some experts downplayed the effects of the new mortgage stress test last week. The roughly 3% improvement in home-buying power—a result of the government lowering the qualifying rate—apparently didn’t impress them. And while we’re loath to overplay the new stress test’s significance, it seems that some analysts’ attempts to quantify the housing impact may be lacking. Quick Explainer: Mortgage borrowers must...

The Mortgage Stress Test Changes

The Department of Finance today announced changes to Canada’s benchmark qualifying rate, a key component used in stress-testing insured mortgages. The new benchmark rate will come into effect on April 6, 2020. It means insured borrowers (including those buying with less than a 20% down payment) will have to prove they can afford a monthly payment based on a rate...

OSFI’s Mortgage Update Raises Questions

Don’t worry about the nagging side effects from the federal mortgage stress test. You might have heard about them in the media, but based on recent stats shared by the banking regulator, they’re overblown. Nothing to see here… Well, actually, there is more to see. OSFI’s latest assertions raise just as many questions as answers. Here were six points from its January...