Stress Test Impacts Measured: MPC Report

Over 6 months into the new regulations handed down by the government earlier this year; Canadians are starting to feel the impact of the new qualification rules.

A newly released report from Mortgage Professionals Canada shows that the latest government rules, namely the stress test that began in January 2018, have caused an imbalance between supply and demand in nearly every region of the country.

There is also negative outlook among consumers towards the housing sector with many people settling in to the notion that they may never own a home and may become lifelong renters.

Below are some of the highlights from the 64 page report:

-100,000 consumers have been prevented from buying a home under the stress test regulations

-32% of consumers expect a negative impact from the stress test on their ability to purchase a home, which increases to 54% for those who are not already homeowners

-House prices have increase 229% between 1997 and 2017 (6.2% per year)

-An estimated 200,000 fewer jobs will be created over the next 3 years due to the mortgage stress test

For the Canadian Mortgage Trends article and report overview click here.

For the full report from Mortgage Professionals Canada click here.

Looking for more information on how the rules may affect your purchasing power? Contact your Mortgage Broker for information and options available.