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Stressing the stress test!

Originally I was 100% in favour of the stress test and I still am to a certain degree. Maybe 2% on-top of a lenders mortgage rate is too much for a first time home buyer! I have a number of buyers who are losing out because of this stress test and climbing prices. Normally I would be able to find them a first home but this has become a challenge and a disappointment for my buyers! Considering downtown condo prices have increased 12.4% year over year, the stress test is adding pressure to the low $500,000 market. The downtown condo market on average is over $1000 per square foot. You may ask what is a stress test? The federal government is concerned that raising interest rates will catch property owners with mortgages off-guard when they renew their mortgages at higher... View Article