Found 2 blog entries tagged as stress test.

What is the Mortgage Stress Test in Canada

A common goal for many Canadians upon completing their education and gaining employment is purchasing their first home. Home ownership is, after all, the Canadian dream. While it’s general knowledge that saving money for a down payment is the first step to eventually purchasing a home, many are not aware of the mortgage stress test. So, what is the mortgage stress test in Canada, anyway?

To put it simply, the mortgage stress test is a mortgage qualifier tool used to determine if the borrower would still be able to continue making mortgage payments, should they lose their job, undergo some other type of financial strain, or if interest rates were to rise.

Before being approved for a mortgage on a home, the borrower must…

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Photo: James Bombales

The rate of growth for housing prices across the country has notably dropped compared to the earlier, more hectic market months of 2021.

In a recent monthly housing market update report, senior RBC economist Robert Hogue noted that the housing market has “calmed down considerably this summer,” which is taking the pressure off of Canadian housing prices.

Although home prices are still on the rise, the pace of appreciation is less than what it was prior to the summer. For the past three months, the average rate of increase was 0.8 per cent month-to-month, a noticeable difference from the first quarter of 2021 when the average rate was 2.6 percent monthly. The rate of price appreciation during the last three months is…

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