Bank Of Canada Mortgage Stress Test Rate Drops For First Time Since 2016

Bank of Canada mortgage stress test rate drops for first time since 2016
Financial Post ~ July 19th, 2019

Canadians may now be able to afford slightly more expensive homes

For the first time in almost three years, the Bank of Canada’s minimum mortgage qualifying rate has dropped to 5.19 per cent from 5.34 per cent.

The central bank’s new rate has a slight effect on the mortgage stress test for those with uninsured mortgages.

“At a minimum, the qualifying rate for all uninsured mortgages should be the greater of the contractual mortgage rate plus two per cent or the five-year benchmark rate published by the Bank of Canada,” states OSFI’s Residential Mortgage Underwriting Practices and Procedures guideline.

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