New rules aimed at cracking down on the mortgage market will result in 100,000 people failing a stress test of their finances, and about half of them will be blocked from buying a home. By the group's estimates based on the market today, "18 per cent of mortgage borrowers who are stress tested, would fail the stress test." That means up to 100,000 buyers would fail the new stress test and be forbidden from buying the home they want at the price they want. The stress test rules also ignore that people generally tend to see their incomes increase over time too. "Using the posted mortgage interest rate today in mortgage stress tests is excessively stringent, and will unnecessarily impair the housing market and therefore the broader economy," the report found.

Source: CBC News December 05, 2017 15:22 UTC