New mortgage stress test to 'add further fuel' to housing, say experts

The Close Morneau unveils mortgage stress test changesBNN Bloomberg's Greg Bonnell looks at the new changes to the mortgage stress tests unveiled Tuesday.

The federal government announced Tuesday it is easing the “stress test” for insured mortgages, which some experts say will loosen the barrier to entry — even if only somewhat — into Canada’s overheated housing markets. The changes, which take effect April 6, will slightly decrease the threshold, or the minimum rate, a customer has to pay to qualify for insured mortgages, while increasing the amount the customer can borrow.

Below, economists and housing experts weigh in on how these changes may impact the Canadian economy, the highly-indebted consumer, the Bank of Canada’s future decision on interest rates and, of course, the prospective homebuyer.

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