CMHC defends mortgage stress test changes amid calls for loosening rules – Cloverdale Reporter

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"If we ease the stress test or extend mortgage amortizations, for sure it is increasing debt and it’s going to bump prices higher," he said. "And those aren’t good for the country.

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Tougher stress-testing hits CMHC mortgage insurance volumes. CMHC does not break out its business volumes by region, but said Ontario accounted for 33.6 per cent of national home buyer loans insured in the third quarter this year, down from 36.4 per cent in the same quarter last year.

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The Canada Mortgage and Housing Corporation is defending the mortgage stress test amid calls for the measure to be changed. President Evan Siddall says in a letter to the Standing Committee on Finance that the new measure is working as intended to lower house prices and protect Canadians from borrowing too much money.

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