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.”