Mortgage Stress Test Changes
Thursday Feb 20th, 2020Share
New mortgage stress test rules that will make it easier to pass
Ottawa annouced on Tuesday that is was loosening the mortgage stress test for
insured mortgages. These changes are set to take effect on April 6, 2020 and will
slightly decreased the threshold (min. rate) a customer has to pay to qualify for insured
mortgages, while increasing the amount the customer can borrow. Under the new rules they
will calculate affordibilty using combination of their actual mortgage rate, plus two per cent.
Example: A buyer with an annual income of $100,000 with a 10 per cent down payment
would have qualified for a mortgage at 2.89 per cent and could buy a home valued at $511,424
under today's stress test. Under the new rules, that same buyer can now afford $526,632 —
that's more than $15,000 more purchasing power.
If you have a questions about the new mortgage rules or looking to invest in the GTA, then contact
Michael Kelly today! info@Michaelkellyhomes.com