A new report estimates the mortgage stress test accounted for at least half of the decline in new mortgage originations last year. ( Lars Hagberg / THE CANADIAN PRESS )He estimates the impact of the new stress test made up $13 billion to $15 billion, or 50 to 60 per cent, of that drop. The other 40 to 50 per cent of the drop comes from increasingly unaffordable home prices and rising interest rates, he said. Lastly, the B-20 contributes to a rise in alternative lending, the report found, which transfers risk from a regulated to a less-regulated segment of the lending market. “Alternative lending, even individual lending, is part of any normally functioning mortgage market,” Tal said.

Source: thestar April 16, 2019 15:04 UTC