What Happens If We Cancel The Mortgage Stress Test?

Current stress test requires uninsured borrowers to qualify at either 5.25% or contract rate plus 2%, but OSFI found it didn't prevent accumulation of high loan-to-income mortgages.

New 450% loan-to-income cap implemented January 31, 2025, restricts banks to issuing no more than 15% of quarterly mortgages to heavily indebted borrowers.

Pre-construction condo market facing crisis with properties being appraised 10-30% below original purchase prices, highlighting need for regulatory oversight.

Specific industries facing increased lending restrictions, including steel and aluminum workers, suggesting broader economic concerns affecting mortgage availability.