OREA joins chorus calling for stress test's annulment
Ontario Real Estate Association (OREA) CEO Tim Hudak has released a statement citing the disparity of the stress test rules given the ongoing NAFTA negotiations and the inevitable rate increases Canadians will see later this year.
Ontario Real Estate Association (OREA) CEO Tim Hudak has released a statement citing the disparity of the stress test rules given the ongoing NAFTA negotiations and the inevitable rate increases Canadians will see later this year.
“Our point of view at OREA reinforces the federal government to take a second look at the stress test because every time the interest rate goes up, the stress test goes up 200 basis points above that, making it even harder to get a mortgage and penalizing millennials, new Canadians and entrepreneurs trying to get into the housing market,” continued Hudak. “We certainly support government programs that encourage responsible and sustainable borrowing, but this pile-on of all kinds of new rules, regulations and taxes harms aspiring homeowners and sets back the potential of our economy.”
As with many professionals associated with the mortgage and real estate sectors, there have been many vocalizations regarding the fairness of the stress test since implementation at the beginning of this year. It remains to be seen if the government is willing to re-evaluate the current regulations for mortgage qualifications.