Quote:
Originally Posted by jonny24
Oh yeah that'll help cool things off
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you aren't stress tested if you renew with your existing lender.
Typically this hasn't been an issue in the past as most people wouldn't hit the stress test trigger when shopping around at renewal time.. but now many people would be hitting their stress test limit at renewal if they changed lenders due to rates being where they are.
Basically without dropping the requirement many homeowners would be forced to renew at their existing lender with predatory rates as they wouldn't otherwise be able to change lenders.
It's forcing competition in lending practices, basically. Nothing wrong with that. As long as it stays for people who are buying new property (i.e. moving), I'm fine with it. I don't see a problem with protecting buyers who are just trying to pay their mortgage on the home they already own and ensuring that they have access to options for their mortgage product.