No Need To Stress About The Stress Test (Part 2)

Stress Test News

Yesterday there was news that the Office of the Superintendent of Financial Institutions (OSFI) is again proposing a further tightening of lending rules aka "The Stress Test" that came into effect in 2018.

Click here to read the article on CBC's website: https://www.cbc.ca/news/business/osfi-mortgage-stress-test-rules-1.5979558

If the idea is adopted, it would mean that the major banks would need to qualify borrowers at a higher rate (5.25% instead of 4.79%), making it harder for some borrowers to qualify for a mortgage.

OSFI first raised the subject Pre-covid but then the notion got shelved when Covid hit.

In the summer of 2019 I produced a video called No Need to Stress About the Stress Test. To watch it, click here: https://youtu.be/OVGsquGxa8Y

My message today is the same as it was in my 2019 video. We mortgage brokers have both prime and non-prime lenders that have workarounds to the stress test. To start, some of our lenders are provincially regulated and therefore they don't fall under the jurisdiction of the federal regulators.

That's why it's always wise to speak with a mortgage broker about the available options when shopping for a mortgage.

I can be reached at 416 876 2031 or you can schedule a meeting with me here: https://calendly.com/david_grossman