2/6  BIS central bankers' speeches  First, additional mortgage guidelines were introduced in January. They were aimed at improving the future resilience of new household debt. The guidelines introduced a new stress-test requirement for low-ratio mortgages. For some households, this meant a reduction in the amount that they could borrow. Borrowers can adjust through various channels.
They could choose to purchase a smaller home, buy in a different neighbourhood, rent rather than buy, or delay their purchase by saving for a larger down payment or waiting for prices to adjust.2 The guidelines are having their intended effect.