The British Columbia Real Estate Association (BCREA) has released a new report outlining where it believes the province’s real estate market would be without the B20 Mortgage Stress Test.
Implemented by the federal government in January 2018, the policy is designed to ensure potential buyers can still afford their mortgage if interest rates suddenly rise.
Despite being advertised as a tool to make the housing market for more affordable, real estate professionals have argued the new regulations have pushed potential buyers out of the market.
According to the BCREA, home sales over the past year and a half in BC would have been 10% higher, or about 7,500 sales, without the stress tests.
That sales decline led to an approximately $500-million hit to BC’s economy, says the report.
The Bank of Canada has said the new mortgage police has greatly impacted first time home buyers, reporting a 20% drop across Canada.
To read the full report, click here.
