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."
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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%.
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