new stress test rules

Mortgage Stress Test Changes

Thursday Feb 20th, 2020


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!




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