In a letter to parliamentarians, Evan Siddall said the mortgage policy is working.
The CEO of Canada Mortgage and Housing Corporation is forcefully defending mortgage stress test rules and warning federal policy makers to hold the line amid calls for the measure to be changed.
“The stress test is doing what it is supposed to do,” wrote president and CEO Evan Siddall in a letter dated Thursday to the Standing Committee on Finance, calling out accusations of unintended consequences.
The stress test requires would-be borrowers to show they would still be able to make payments if faced with higher interest rates or less income. It first applied to insured mortgages or those with down payments of less than 20% of the purchase price with a variable rate and a term of less than five years.