How the portrait of a first-time homebuyer has changed since the stress test.

Original article via Financial Post. Click here to read.

The mortgage stress test, extended to uninsured mortgages in January 2018, has generated a diversity of opinions. Its proponents argue that the stress test has introduced financial discipline while not hurting prospective homebuyers. The discontents believe that the stress test has eroded the affordability of first-time homebuyers, some of whom have been forced to rent for more extended periods.

The recently released CMHC mortgage consumer survey helps unpack the arguments on the impact of the stress test. The CMHC surveyed 1,385 homebuyers across Canada who had undertaken a mortgage transaction in the past 18 months. This implies that some respondents reported on their mortgage-related experience from 2018.

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