Easier Mortgage Stress Test Rate to Arrive in April

Author: External Author | | Categories: Debt Consolidation , First Time Homebuyer , Mortgage Broker , Mortgage Pre Approval , Mortgage Refinance , Mortgage Renewal , New to Canada Mortgage , Renovation Financing , Rental Properties , Second Home Mortgage , Self-Employed Mortgage , Spousal Buyout

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The Department of Finance announced on February 18 that it will be tweaking the qualification criteria used in the stress test, to go into effect on April 6 – just in time for the busiest housing market season of the year. Under the new changes, the benchmark rate – also referred to as the “floor” – used to set the stress test threshold for borrowers will be changed from the five-year rate set by the Bank of Canada (which in turn is set by an average of the posted five-year rates offered by the Big Six banks) to the weekly five-year median insured mortgage rate used in mortgage insurance applications, plus 2%.

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Original Article Source Credits:  toronto storeys, https://torontostoreys.com/

Article Written By Penelope Graham

Original Article Posted on :  February 20, 2020

Link to Original Article: https://torontostoreys.com/easier-mortgage-stress-test-april-2020/

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