Oct 18, 2017
By Michael Kramer
The nation’s housing agency says – stress testing confirms that its mortgage loan insurance and securitization businesses – are in good shape.
Canada Mortgage and Housing Corporation tested the strength of its businesses against several extreme scenarios – and says the businesses would be able to withstand a shock.
Among the hypothetical situations were the impact of an earthquake in a major urban centre – a steep drop in the price of oil – and an American style housing correction – where unemployment rises along with a fall in house prices of 30 per cent.
C-M-H-C has been publicly releasing its stress test results since 2015.