TRREB Statement on Federal Fall Economic Statement
The Toronto Regional Real Estate Board (TRREB) applauds and welcomes today’s fall economic statement offering several important housing focused initiatives. We especially commend the federal government for listening to many industry stakeholders, including TRREB, in establishing a new Canadian Mortgage Charter. This Charter significantly includes the removal of the stress test requirements for insured mortgage renewals in cases where a borrower is switching lenders, something TRREB has been calling for in recent years.
Since the mortgage stress test was introduced in 2016, borrowers who switched lenders when renewing their mortgages were not exempt from the stress test qualification rule, which in today’s high interest rate environment is approaching 8 per cent. This is a positive change to the current mortgage stress test requirements with close to 60 per cent of Canadian mortgages coming up for renewal in the next three years. This measure will give homeowners more flexibility to shop for the best possible rates and products, helping them save money during a time of heightened affordability challenges.
Paul Baron, TRREB President
John DiMichele, TRREB Chief Executive Officer