The latest lending rules to hit the Canadian mortgage market are designed to ensure home buyers can still comfortably afford their mortgage payments in the event interest rates increase.
HERE’S WHAT YOU NEED TO KNOW
- If you’re buying a home or refinancing your mortgage, you will to qualify using the benchmark rate introduced on June 1st, 2021. When your Financial Institution qualifies you for an Uninsured or Insured mortgage they will need to use the benchmark rate currently 5.25% or your contract rate + 2% whichever is greater.
- If your mortgage is up for renewal and you’re staying with the same financial institution, you will not be affected by the stress test.
- If you’re mortgage is up for renewal and you’re planning on switching lenders, you may be subject to qualifying at the higher stress test rate.
Still unsure of where you fit in?
Use this handy chart to determine if you’ll be tested.
Still Have Questions?
Talk to our Financial Services Officers to see how these changes may affect you.
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