For many Canadians in major markets such as
Toronto or Vancouver, housing affordability is a hot button issue. In response
to escalating house prices and levels of consumer lending, the Government of
Canada in 2018 implemented the B-20 stress tests, which required banks to test
a borrower’s ability to make mortgage payments at 200 basis points (2%) above
their mortgage rate.
While there has
been a noticeable slowdown in housing sales, there’s another sector
of the lending ecosystem which has benefited greatly from the B-20 stress
tests: private mortgage lenders.
According to data
from the Bank of Canada in November 2018, private lenders in Toronto
have seen an increase in the […] Read more