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Mortgage Broker News | 28 Jul 2016, 08:15 AM Agree 0
Standardized banks to double-check the impacts of hypothetical price drops of 50 per cent (in Vancouver) and 40 per cent (in Toronto)
  • Herry | 28 Jul 2016, 10:00 AM Agree 0
    Canadian housing belongs to Canadians, not communists. Eh harper ?
  • Victor Simone | 28 Jul 2016, 11:10 AM Agree 0
    OSFI is doubling the required stress test with a huge and perfectly impossible decline in prices. Prior to 1991-1992 that saw real estate prices drop by 25%, the average real estate drop in a recession was only 15%.

    Try as they may but the experts trying to predict a disaster just can't understand why consumer confidence remains so high. The only thing that will affect consumer confidence is a huge rate spike.

    Stress tests ABOVE 15% are just not realistic, and in such a scenario the interest rates would need to jump over 2%, imo. Again, not since 1990 have we seen such a rate movement of 2% in a 3 to 6 month period.
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