Changes to the Mortgage Stress Test
Mortgage Stress Test change
The Canadian Department of Finance has announced that as of April 6th we will see a change to the current mortgage stress test.
what does the upcoming change mean?
Currently the mortgage stress test requires insured borrowers to qualify at a rate of 5.19% (Base on 5 year posted rate). The change will have borrowers qualifying at a rate based on the weekly median 5 year fixed rate plus 2%. At present this looks like it would mean qualifying at a lower rate.
Currently we do not have all the information to truly determine what this will mean for home buyers. At a quick glance of what we do know it appears to be positive. While its not the dramatic change that many have been hoping for it seems to be a step in the right direction. It is still to be announced how this will all be calculated and how much of the market this change will affect.
We will be sure to post when we get the rest of the details to this upcoming change!
Contact Brenda or Jessica at Mortgage Alliance Advance mortgage to find out more!
For a closer look at the changes check out this article from Canada Mortgage trends