At the time OSFI introduced stress tests, first in 2016 and expanding them in 2018, many questioned the utility of these measures, especially when prairie housing markets were struggling with sales and prices. Raising the bar meant fewer households would qualify for mortgages, or they would qualify for lower amounts than desired. Almost 10 years later, and since the unpredictable swings in financial markets brought about by black swan events like tariffs, wars and a global pandemic, Canadian regulators’ foresight should be a source of comfort.
Read full article on The Growth Op
