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Mortgage Professionals Canada.pdf

the-false-binary-report-may-2019.pdf

Preview of Mortgage Professionals Canada

🔗 Source: mortgageproscan.ca

📊 Size: 684 KB

👤 Author: Will

⬇️ Downloads: 155

Summary

The Canadian government's mortgage stress tests, introduced in 2016 and 2018, require borrowers to qualify for mortgages at interest rates 2 percentage points above the contracted rate. While the government claims the tests are working as intended to reduce risky borrowing, critics argue they are too stringent and harm the housing market and economy. The government portrays the issue as a binary choice between keeping or eliminating the tests, but critics propose modifications, such as considering income growth, to reduce harm. The tests' design flaw and lack of consideration for future income growth are key concerns. The report discusses the impacts of the stress tests on housing activity and the broader economy, citing a Bank of Canada study that found the tests reduced sales by 10,000 units annually.

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Description

The Canadian government's mortgage stress tests, introduced in 2016 and 2018, require borrowers to qualify for mortgages at interest rates 2 percentage points...

Technical Information

File Format: PDF
File Size: 684 KB
Pages: 19
Language: EN
Author: Will
Total Downloads: 155
Last Updated: 1 week ago

Document Overview

This PDF document about Mortgage Professionals Canada provides comprehensive information and guidance. Whether you're a beginner or advanced user, this resource offers valuable insights into Mortgage Professionals Canada.