Higher ratesThe stress tests are based on the notion that interest rates are set to rise, and there's ample evidence to suggest that's likely to come true. Bank of Canada Governor Stephen Poloz is widely expected to raise interest rates a little in 2018. In early December, an appeals court upheld a previous decision ordering the Toronto Real Estate Board to stop hoarding data on home sales. While the fight is localized to the Toronto market, TREB represents almost 50,000 brokers, so its influence is substantial. But higher interest rates and limits on foreign buyers, plus the stress test rules, "will act as an effective counter-balance, causing no net change."

Source: CBC News January 02, 2018 09:56 UTC