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CMHC passes stress test for severe scenarios such as cyber attack and earthquake

October 2, 2018 6:53 PM
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Mennill added that one of these situations also accounted for an interest rate hike, a move anticipated to happen later this month when the Bank of Canada meets.

The Bank of Canada’s trend-setting interest rate currently sits at 1.5 per cent after four increases since the middle of last year.

“We are quite confident we can withstand even fairly extreme increases in interest rates,” he said, noting that the agency factored in a scenario where the posted mortgage rate was seven per cent for a sustained time period.

The agency provides mortgage loan insurance for home buyers as well as securitization guarantee programs to help financial institutions.

Source: thestar.com

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