Chris Bramwell April 2021 Market Report

A federal banking regulator, the Office of the Superintendent of Financial Institutions (OSFI) has given notice of their intention to tighten the mortgage stress test on June 1, 2021. The stress test pertains to buyers who will have a 20%+ down payment on their next home. This change could cut the borrowing power of a majority of buyers by roughly 4 percent. I strongly suggest that all buyers discuss the impact of these changes with your financial institution or mortgage broker. This article https://apple.news/AFcuSs30zTw-pDIFANo2kPw offers an in-depth review of the history of the stress test, market conditions, and the official OSFI notice (embedded link: to slightly tighten). It appears that the OSFI wishes to ensure that buyers can accommodate higher mortgage interest rates, if they rise and attempt to tap the brakes on the Canadian housing market, again.

I have attached the London Market Report for April. The median prices continue to rise in all communities within the greater London area when compared to the same month in 2020. Of specific interest is the Market Indicator which declined to 78.2 for the month of April. This indicates a slight build of housing inventory in the market. I suspect that it is due to the current Provincial Stay at Home Order and that inventories will again decline in June.

As always, I continue to provide both virtual and in-person services during this challenging time. If I can be of assistance please don’t hesitate to contact me via text/voice at 519-777-6521.

Chris Bramwell April 2021 Market Report