UPDATE! Stress Test Changes on HOLD & $300 Billion Released

In Bank of Canada, Coronavirus, New Mortgage Rules, OSFI, Stress Test by Vancouver Mortgage Broker

With the recent developments of coronavirus and concerns it will have on the Canadian financial system and economy, the stress test changes scheduled for April 6, 2020 are now suspended.  The stress test will remain as is, with all mortgages qualified at the Bank of Canada benchmark rate (currently 5.19%).

The Minister of Finance and the Office of the Superintendent of Financial Institutions (OSFI) has decided to defer changes as they need to place their focus with complications the coronavirus will be causing on the financial system.

We expect when COVID-19 clears, OSFI will re-visit the Stress Test policies and review again for changes.

In the same announcement OSFI reduces the Domestic Stability Buffer for domestic systemically important banks.  This supports over $300 billion in additional lending capacity to supply additional credit to the economy during an expected period of disruption related to COVID-19.