Borrowers overwhelmingly feel the stress test is hurting affordability – but is reducing or eliminating it the answer?
Half of all Canadians who are aware of the B-20 mortgage stress test agree that it has reduced housing affordability – although this feeling is much more pronounced in Ontario than elsewhere in the country. According to a recent Zoocasa survey, Ontarians and British Columbians are also more likely to have a high level of awareness of the stress test (62% in Ontario and 58% in British Columbia, versus 57% of all Canadians), which is unsurprising given that those two provinces are home to the nation’s two hottest markets. However, only 42% of BC residents were convinced that the stress test had an impact on housing affordability, compared to 57% of their Ontario counterparts.
When asked what measures would give borrowers some relief, 28% of respondents recommended increasing the amount of the first-time home buyers’ tax credit. Meanwhile, only 15% thought the government should reduce the mortgage stress test rate.
Click all images to enlarge.
