In Michael Campbell’s November Economic Update, he talks about the good old days when only insured mortgages (those with less than 20% down) were ‘stress tested.' But all of that changes January 1, 2018, when all mortgages will be ‘stress tested.'
Why the stress test? Simply put, the Government is trying to limit the exposure of the financial system and CMHC from a downturn in housing prices.
Who is happy about that? Perhaps Credit Unions who are not subject to the new stress test rules. Or perhaps Banks, because mortgage renewals do not have to be stress tested if clients stay with the same Bank, which ultimately eliminates the need to offer best rates or match rates with other lenders.
What should the consumer think about that? Click on the link for the full report for November 2017.
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BC & Alberta Mortgage Broker
When I'm not breaking the knuckles of different lenders for better mortgages for my clients - I'm kidding (or am I?) - you can usually find me visiting with friends or family, writing for this blog, or doing my best to keep from capsizing a dragon boat!