Brent on the Stress Test

Under All News & Events, Commercial

Thoughts from #T3KCommercial Managing Broker, Brent Francis:

“Top bankers and analysts are calling for easing of the stress test. With sales down in all markets, the stress test is being lamented by REALTORS® and mortgage brokers alike.

When the stress test was originally applied, borrowers had to qualify at 2% over the actual mortgage rate for borrowers putting less than 20% down.
Then the government applied the test to all mortgage borrowers regardless of the amount of down payment.

This test effectively removed 30% of the first time buyer low income borrowers.

Now that the market is in the tank, Bankers, REALTORS® and Mortgage Brokers are looking for relief from this poorly thought-out government policy.”

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