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 [...]

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