Real Estate Management News quotes Toronto lawyer Stephen Kerr in an article on stress test rate.
“The stress test rates were just too high in light of the actual rates being charged by banks,” says Stephen Kerr, a Toronto-based corporate/M&A partner at the law firm Fasken. “The rates were artificially high.”
He points out that when the stress test rates were imposed two years ago, they were meant to protect home buyers from excessive debt, insulate smaller banks from exposure to bad loans, and prevent the housing market from overheating.
