Mortgage Qualification Archives

03Mar

Higher interest rates are here. What does that mean for you?

[Synergy Mortgage - March 3, 2022] The Bank of Canada has been signaling for a while now that they will respond to inflation by raising interest rates. Sure enough, on March 2nd they announced a hike in the overnight rate by 0.25%. Here are answers to the most commonly asked questions. How does this affect my current mortgage? It depends if your mortgage is fixed or variable. A rate hike will impact variable-rate mortgage holders immediately as more of your monthly payment [...]

Mortgage Education Centre, Mortgage Qualification, Vancouver Real Estate

05Jan

Canada’s bank regulator keeps mortgage stress test unchanged despite spiking home prices, rising household debt

[Globe and Mail - December 17, 2021] Canada’s bank regulator said it is not changing the mortgage stress test, calling the borrowing rules “adequate,” even as home prices continue to accelerate and household debt rapidly increases. The Office of the Superintendent of Financial Institutions, or OSFI, said the mortgage stress test for uninsured mortgages will continue to require borrowers to qualify at a rate of 5.25 per cent. The Finance Department also said the rate would remain the same for borrowers [...]

Canada, Industry News, Mortgage Qualification

28Jul

New stress test rate makes it more difficult for home buyers to qualify for mortgage

[Toronto Sun - July 3, 2021] Home buyers have contended with a series of costly hurdles in this ongoing, high-octane housing market — supply shortages, growing and pent-up demand, red hot prices and bidding wars just to name a few. It’s been a great time for sellers, but not so great for those looking to get into the market or upsize. Now the federal government is effectively putting another significant hurdle on the path to home ownership that will especially impact first-time [...]

Canada, Mortgage Education Centre, Mortgage Insurance, Mortgage Qualification, Vancouver Real Estate

08Apr

Bank regulator proposes tougher mortgage rules as ultralow rates fuel overheated housing market

[Globe and Mail - April 8, 2021] Canada’s bank regulator is proposing to make it harder for borrowers to qualify for a home loan, as ultralow mortgage rates fuel the country’s overheated real estate market. The proposed changes to the mortgage stress test for uninsured mortgages would effectively raise the minimum qualifying rate to 5.25 per cent. Current rules require banks to qualify borrowers at a rate two percentage points higher than the market rate or the Bank of Canada’s conventional five-year [...]

Mortgage Qualification