On 17 October, Canada implemented new federal mortgage rules. The new rules include a stress test. The test is conducted in order to determine whether an individual requesting a loan would be able manage it if the individual’s finances change or the interest rates change. Previously, the tests were not required on mortgages that were fixed-rate or lasted longer than five years. Government officials hope the new mortgage rules would stabilize the housing market.
[Madison Landry, email@example.com]