It’s almost a year since the B-20 lending regulations came into effect where borrowers for a conventional mortgage were required to pass a stress test (with a mortgage payment using an interest rate that is the greater of 5.34% or their actual mortgage rate plus 2%.) If a borrower wanted to switch lenders to get a better rate, then they must pass the stress test. This is not the case if they are renewing with the same lender. The following article from the Financial Post discusses how the big 5 banks have benefitted, while consumers have been hurt.
Financial Post: Canada’s Big Banks Tighten Grip on Mortgage Market After Rule Changes