B-20 Stress Test

Changes to Stress Test Mean Good News for British Columbians

Canada's Parliament Hill and Parliament Buildings, the seat of the federal government of Canada, taken from the back side of the building

The advocacy of BCREA and other stakeholders has resulted in the Federal Minister of Finance Bill Morneau announcing changes to the mortgage stress test. The stress test is used to determine the minimum qualifying rate for mortgages. The new benchmark rate will be the weekly median five-year fixed insured mortgage rate from mortgage insured applications,

B-20 is Stressing Potential Home Buyers

The federal B-20 stress test is preventing many British Columbians from achieving their dream of home ownership. The Office of the Superintendent of Financial Institutions enacted new mortgage rules in 2018, requiring borrowers to qualify for a mortgage at the higher of either the rate they’ve negotiated with their bank plus two per cent or

The Impact of the B20 Stress Test on BC Home Sales in 2018

To view the Market Intelligence Report PDF, click here. Summary Findings: The decline in home sales in 2018 was largely due to market factors like interest rates and affordability Without the stress test, home sales in BC would have been about 7,500 sales—or 10% higher—in 2018 Approximately $500 million in BC economic activity was lost

B-20 Stress Test Needs Revision to Improve Housing Affordability

Vancouver, BC – March 12, 2019. The British Columbia Real Estate Association (BCREA) is calling on the federal government to revisit the B-20 stress test so that more BC families can achieve their dream of homeownership. Mortgage lending rules, known as the B-20 stress test, have eroded housing affordability by reducing the purchasing power of