The Toronto Real Estate Board (TREB) is calling on the federal government to reconsider its mortgage stress test.
In a news release, TREB said that the mortgage stress test is too stringent and keeping a number of potential homebuyers out of the market.
"The Office of the Superintendent of Financial Institutions mandated mortgage stress test has left some buyers on the sidelines who have struggled to qualify for the type of home they want to buy. The stress test should be reviewed and consideration should be given to bringing back 30-year amortizations for federally insured mortgages," said TREB President Garry Bhaura in the written news release.
TREB made the unusual call for the stress test to be reviewed as it announced that home prices inched higher in Canada's largest real estate market during February even as sales activity slowed down.
The average selling price across the Greater Toronto Area (GTA) rose 1.6% year-over-year in February to $780,397, according to data released by TREB on Tuesday. The price appreciation was even greater when compared to January's average price of $748,328.
TREB said in the news release that Toronto’s housing market became tighter in February because new listings fell more sharply – by 6.2% -- than the slowdown in sales. Just over 5,000 homes in the region traded hands in February, marking a 2.4% decline from a year earlier.
