OSFI Superintendent Peter Routledge hinted once again that Canada’s banking watchdog might fiddle with or outright ditch the mortgage stress test.
He argued that the newer loan-to-income (LTI) limit is better suited to its mandate, "which is to supervise financial institutions, not individual Canadians."
💡The government's mortgage stress test demands that borrowers at federally regulated lenders prove they can afford a rate that is the greater of 200 bps above their contract rate or 5.25%....
MLN NewsStream
Canadian Yields are Being Dragged Higher by the U.S.
Much of the 58 bps burst in 5-year GoC yields since April 4 is "being driven by increasing term premiums," according to a new Desjardins report by rates strategist Royce Mendes....
65% of First-timers Max Out Purchase Price: CMHC MCS
That was just one revelation in this year's annual Mortgage Consumer Survey from CMHC. The report remains one of the industry's go-to peepholes into the psyches of mortgage hunters.
Below are nine data-driven insights from the study, plus nine ways to turn the data into deals....
Big Fork in Expectations + Mortgage Tidbits
Folks worried that U.S. stagflation will spill over Canada's border might find the chart below interesting. It shows what the Wall Street herd thinks will happen with U.S. GDP and core PCE inflation. It's like choose-your-own-adventure for economists....
Moody's Cuts U.S. Credit Rating
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