04/12/2021
https://www.cbc.ca/news/business/osfi-mortgage-stress-test-rules-1.5979558
Bill's Comments:
Bill Macklem believes our analysis that all Governments not addressing the problem of their failure to incentivize municipalities and cities to approve more building permits providing more available housing. By increasing the supply of homes the increase in price of homes would soften thereby allowing more Canadians to purchase their homes in a more normal environment rather that in a buying frenzy. The way the government is handling the housing crisis is from a negative perspective. It is like someone opening a great restaurant and it is so busy they decide to open a second restaurant. The government would not do that. They would increase the prices on the menus to reduce the number of customers that could afford the cost. This is certainly not the way to build an economy nor a country.
Canada's top banking regulator is proposing to raise the mortgage stress test level to 5.25 per cent or two percentage points above the market rate, whichever is higher, making it harder to qualify for a home loan, shrinking the pool of qualified borrowers and ultimately bringing down house prices.
