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 [...]

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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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