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According to the real estate industry, one of the factors that slowed down the demand for real estate in Vancouver is the mortgage stress test.
The stress test came to effect on January 1, 2018 in Canada, and the test requires buyers with mortgage requirement to prove they can afford payments at qualifying interest rate which is 2 percentage points (2%) higher than the actual rate in the mortgage contract (the actual rate the buyers are paying).
How did the stress test impact on the demand for real estate?
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