Langstaff Gateway Condos location. Mortgage stress tests will be tightened! Since the outbreak of the COVID-19 epidemic around the world, despite the disastrous defeat of the Canadian economy, the real estate market has been “thriving” and rising crazily.Please Visit: Langstaff Gateway Condos location to Get Your VVIP Registration Today!
But according to the latest news, Canada’s banking regulator is proposing to tighten mortgage stress tests, aimed at alleviating the financial risks caused by the overheated real estate market.
The financial institutions regulatory office said it would set a new benchmark interest rate to determine whether people are eligible for uninsured mortgages with a minimum interest rate of 5.25%. According to the published interest rates of several major banks, the threshold is now 4.79%.
“Residential mortgages have always been critical to the safety and stability of financial institutions and are more important today than ever before,” agency head Jeremy Rudin (Jeremy Rudin) said in a statement.
He said that the recent overheating of the real estate market and soaring house prices have been noticed by the government and experts. Under the epidemic, cheap, low-interest loans and widespread implementation are working remotely, fuelling frenzied demand for more spacious homes.
The Canadian Real Estate Association estimates that house prices across the country have risen by 17% in the past 12 months. Prices in 12 major urban areas have risen by more than 30%.
The Office of Financial institutions Management of Canada said the current state of the real estate market “may expose lenders to greater financial risks and force regulators to take positive action.” Regulators say they will review at least once a year. It is reported that the plan will be implemented on June 1 after negotiations.