A prominent Canadian think tank has come out against requiring a new stress test for all uninsured mortgages.

A Fraser Institute study published Wednesday argues that it’s unnecessary to impose the stress test on “financially sound” homebuyers.

The study’s author also argues the proposed stress test “will do more harm than good” by limiting access to mortgages for some homebuyers.

The think tank’s study is being published as the federal Office of the Superintendent of Financial Institutions (OSFI) finalizes new lending guidelines.

Read: OSFI to finalize stricter mortgage lending guidelines

The head of OSFI has said that Canada’s banking regulator wants to reduce the risk of mortgage defaults because of high levels of household debt.

The Fraser Institute is an independent, non-partisan organization that tends to prefer free-market policies over government regulation.

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