18 Aug

Benchmark ‘stress test’ qualifying rate drop

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Posted by: Aneta Zimnicki

Benchmark ‘stress test’ qualifying rate drops by 0.15% to 4.79%. Means you can qualify for about $5K more average mortgage. Small gesture move, but hopefully moving towards more realistic rate.

“The tests are designed to ensure borrowers will be able to continue to afford their mortgage payments in the event of a future interest rate increase. Maintaining the current qualification requirement is overly burdensome and limits opportunity for many, and appears overly constrictive given the unambiguous guidance given by Bank of Canada Governor Tiff Macklem on July 15: “If you’ve got a mortgage or if you’re considering making a major purchase […] you can be confident rates will be low for a long time.” – Mortgage Professional Canada research