New Mortgage Stress Rules
October 24, 2017 | Prairies
Regardless of down payment size, all lenders will be obligated to qualify homeowners for a mortgage amount based upon a higher interest rate. This rate will be the greater of the five-year benchmark rate published by the Bank of Canada (currently 4.89%) or the contractual mortgage rate plus 2%.While lenders won’t be obligated to apply this updated "stress test" on mortgage renewals for existing borrowers, they may choose to do so.Click here for the news release from the Government of Canada's Office of the Superintendent of Financial Institutions. For further information regarding this update, please email talib.daredia@iicanada.net
