What is Your Opinion of the Stress Test?

Evan Siddall, chief executive officer of Canada Mortgage and Housing Corp., offered an aggressive defence of Canada’s tough mortgage qualification standard which was set in place to forestall potentially devastating economic consequences.

He lashed out against industry groups such as Mortgage Professionals Canada (MPC) who have been urging reforms to the stress test which would, (in Mr. Siddall’s opinion), drive up home prices in major cities while stimulating more borrowing by Canadians who are already deeply indebted.

“Apparently the MPC is content to see home builders, real estate agents and mortgage brokers receive short-term benefits while Canadians bear the long-term costs,” Mr. Siddall said. “My job is to advise you against this reckless myopia and protect our economy from potentially tragic consequences.”