What happens in other cities when the residential real estate market detaches from rental rates and incomes? The government and banking system think of ways to ease the burden. It’s not reasonable to believe we can decrease the allure of living in Vancouver, Toronto, Stockholm, Hong Kong, NYC, Paris, London, etc.
Stress tests are a huge problem for first time buyers. There are safe preexisting measures called Total Debt Service (TDS) and Gross Debt Service (GDS) ratios to make sure a buyer qualifies for a mortgage.
Buyers are not children and they need to be treated like adults. Amortization rate should be extended to 50 years. Very few buyers today keep their homes forever. This will greatly help buyers in expensive markets like Toronto and Vancouver.