Merry Christmas: The Government Will Be Re-looking At The Mortgage Stress Test

Sometimes good news comes in ways you don’t think will help you. However, the Prime Minister has asked the finance minister to re-look and improve the mortgage stress test to make it more affordable for Canadians.

• The mortgage stress test has had these effects since implemented:
• Unit sales for single detached units have dropped
• Canadians could afford approximately 20% less in mortgage amounts
• In order to get around regulations, Canadians have turned to alternative lending [subprime] and private lending
• Since Canadians could afford less, they chose to rent and Hamilton rental rates have skyrocketed
• Rental markets are super tight as vacancy rates have dropped
• Builders are building less units due to affordability
• The government took out the euphoria that was present in 2017

Jingle bells and happy new year since any improvement to the mortgage stress test will all make 2020 better!

Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

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