Fergus Hodgson: Canadians Abandon Ownership Thanks to Mortgage Restrictions

An uproar is brewing over real estate in Canada, fueled by a misguided attempt to protect willing homebuyers from themselves. Owners see prices declining, while prospective first-time owners find themselves locked out by mandated stress tests.

As sought by lenders and industry experts, the federal regulator should ease stress-test requirements—if not eliminate them altogether—before they cause further harm and curtail construction and broader economic activity.