Finally, after way, WAY too long the Bank Regulator OSFI finally figured out that the Stress Test on mortgage Renewals made ZERO SENSE
Here’s why: everybody who gets an automatic mortgage renewal from their existing lender, the lender does not even ask if the borrowers are still EMPLOYED and no Stress Test at all. But if you want to get a better rate with another lender then you not only have to verify & qualify based on income you also must apply the Stress Test: this causes 15% of all borrowers to fail to qualify but their existing bank didn’t even know if they were working. Classic stupid Canadian way to force people to pay higher mortgage rates. Finally solved
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