Mortgage industry representatives met with around 50 members of parliament and other government officials to urge them to reconsider some of the measures introduced to curb the housing market.
Mortgage Professionals Canada highlighted the continued negative impact of the stress test and discussed housing affordability.
“Fewer Canadian now are able to obtain the mortgage they need to acquire a home, and many sellers now find fewer buyers to sell their home too,” said Paul Taylor, President and CEO of Mortgage Professionals Canada. “As we first outlined at the time of the mortgage rule changes, it’s now clear that our concerns regarding the cumulative impact of said changes are decreasing competition and increasing costs for consumers.”
While acknowledging the intent behind the policy changes that have impacted the housing market, MPC says that the measures have made it harder for many Canadians to achieve their dream of homeownership, something previous generations have enjoyed.
“We ask that the government reconsider and recalibrate these policies to ensure the Canadian Dream is as achievable for this generation as it was for their parents and grandparents,” said Mark Kerzner, MPC Board Member. “We have outlined five clear asks that reflect the growing national evidence being felt by Canadians from coast to coast, which includes uncoupling the ‘stress test’ from the Bank of Canada 5-year benchmark rate and be set to 0.75% above the contract rate set by the lender, as well as changes to the B-20 ‘stress test’.”