The proposals to extend mortgage stress test to uninsured loans is unnecessary and excessive according to the Urban Development Institute.

UDI Pacific Region president and CEO Anne McMullin wrote to federal finance minister Bill Morneau last week calling for the government and OSFI to reconsider the mortgage restrictions, saying that they are “in many respects, counterproductive to growing our economy and improving housing affordability.”

Ms. McMullin says that first-time buyers including many young families will be priced out of the housing market; and real estate industry jobs will be impacted.

The UDI is calling for increased housing supply to tackle rising home prices, especially in fast-growing communities and is urging the federal government to focus more on supply matters.

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