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Impacts of the Stress Test

There’s been a lot of talk about the government’s mortgage stress test recently—particularly since it was left untouched in last week’s federal budget, despite high expectations of at least some tweaks.

But a recent report from Teranet shows some of the tangible impacts the stress test has had on the mortgage market, namely that Canada’s big banks appear to have been the biggest losers from the new rules.

The Big 5 banks saw their share of mortgages in Ontario decline to 72.6% in 2018 from 75.3% in 2017, according to Teranet, which heads Ontario’s electronic registry system.

On the flip-side, credit unions and private lenders, which don’t fall under the rules of the stress test, came out as the biggest winners, with their market share in Ontario both rising 0.8% over the same time period, followed by Trust companies with a 0.7% share gain.

Read the whole article here.

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