An insolvency firm called MNP Ltd. made the news last December when they announced their survey found 31 per cent of Canadians say they don't make enough to cover their bills and debt payments. The Office of the Superintendent of Financial Institutions (OSFI), who’s mandate is to protect Canadian financial systems by making sure the institutions are stable has been worried about Canadian household debt for some time. They introduced the B-20, also called the “mortgage stress test” to make sure Canadians didn’t borrow on the edge of their abilities. The stress test stipulates home buyers must demonstrate they can afford the mortgage at two per cent higher than their mortgage rate.
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