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STRESS TEST QUALIFYING RATE GOING UP TO 5.25%!!!!
You may have heard that the Office of the Superintendent of Financial Institutions (OSFI) was proposing changes that would strengthen the stress test applied to uninsured mortgages (typically for those with more than a 20% down payment).
This increase was recently confirmed by OSFI effective June 1st. And following closely the same day, Deputy Prime Minister and Minister of Finance, Chrystia Freeland, issued a statement of her own, announcing the alignment of the insured stress test with the uninsured stress test, also effective June 1st.
This means that anyone applying for a mortgage from June 1st onward will have to qualify at their mortgage contract rate plus 2% or 5.25% (whichever is higher). The stress test currently has a minimum qualifying rate of 4.79%.
How does this affect you? Let’s virtual chat! Mr. Marvellous =)