Buyers Stress Test

Vancouver, Toronto  see home-sales rush ahead of new stress-test rules



For The Globe and Mail
VANCOUVER AND TORONTO 




NOVEMBER 2, 2017

Home sales climbed in October in both Vancouver and Toronto as buyers moved to lock in purchases in Canada's most expensive cities before new mortgage stress-testing rules take effect in January.

Buyers are keen to move before the rules take effect Jan. 1, he said. "That's getting people out and buying – I think that's a big factor for sure," Mr. Richardson said. Chris Alexander, regional director for Ontario and the Atlantic region at Re/Max, said he credits the pending mortgage rule change with spurring at least half of the buying action in the GTA in October.

"The OSFI stuff is definitely driving some of this," he said. 

The OSFI rule change will require buyers who are making down payments of more than 20 per cent of a home's value to prove they could still afford their mortgage payments if interest rates were 2 percentage points higher than the rate they negotiated.

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