Quote:
Originally Posted by MillerTime GFG
Are you referring to the stress test? The original stress test was for high ratio (insured) mortgages only, but they amended that to include conventional mortgages a year or so later, so it would be applicable in your scenario.
|
Yes, but the person with lots of equity purchasing a smaller investment property is likely to be able to easily pass the stress test. They drive up prices and the working family looking to buy their first home has a double whammy to deal with, of both increased pricing and a stress test.