Dear OSFI, Double the Effect of any Interest Rate Drop — Cut the +2% B-20 Stress Test by a matching amount (1/4% for a 1/4%) (1/2% for a 1/2%) to any upcoming B of CDA Interest reduction – until all Mortgage terms qualify at the Gov-Posted 5 Year Rate – same rate for everybody
Initial blurb on this Until the mortgage Face rate + Stress test added% = the Federal 5yr base comparator rate. ie until the stress test becomes a neutral adjustment for the shorter-term/lower rate mortgage term and variable types Then the Stress % STAYS at that +%= 5yr until policy needs to switch to stimulative The…
unclebobexplains 