Latest In Mortgage News: Stress Test Rate To Drop

The mortgage stress test rate in Canada is expected to drop from 5.04% to 4.99% next week due to a reduction in some Big-Bank posted rates. This will mark the first time since January 2018 that this benchmark rate has been under 5%. Mortgage arrears in Canada are expected to peak in the third quarter of 2021 at around 0.80%, close to double the peak arrears rate in 2009. The BoC is optimistic about the country's ability to weather the COVID-19 pandemic, with strong capital and liquidity buffers, a diversified asset base, the capacity to generate income and the protection of a robust mortgage insurance system. However, many Canadians fear being locked out of the housing dream, with one in five (20%) believing they will never be able to purchase a home.

Gen Zers are most optimistic about their ability to own a home, with 81% saying they'll own a home at some point in the future. Mortgage fraud is a major issue in Canada, with 10% already owning a home. A mortgage broker shared an exchange with an individual who tried to take the system for a ride. The bank cancelled the client's mortgage approval on the basis of mortgage fraud.