Stress Test Changes Being Suspended
Last month’s announced change to Canada’s insured mortgage stress test—which was to take effect April 6—has now been put on hold.
The federal government had planned to change the formula for the benchmark qualifying rate, which would have reduced the stress test from today’s rate of 5.19% to 4.89%.
A similar change for the uninsured mortgage stress test being considered by the Office of the Superintendent of Financial Institutions (OSFI) pending industry consultations has also been put on hold.
“In view of the current developments, OSFI is suspending all of its consultations and policy development on new or revised guidance until conditions stabilize. This includes the new proposed B-20 benchmark rate for uninsured mortgages,” OSFI announced. “As a result, the benchmark rate as currently published by the Bank of Canada will remain in force until further notice.”