How much income do I need to qualify for a mortgage in Canada? + MORE Jun 19th

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The best GIC rates in Canada
Find the best GIC rates in Canada. Plus, everything you need to know about how they work.

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By Keph Senett and Justin Dallaire on June 19, 2024Estimated reading time: 22 minutes

Here you’ll find the answers to common GIC questions, along with information on the best GIC rates available right now. If GICs are new to you, and you want to learn everything there is to know, start by reading our guide below…

Canadian investors hold cash in their portfolios for several reasons: It’s a safe way to cushion against market volatility. It provides easy access to funds in case of an emergency or unexpected expense. And it means you’ll have liquid assets in case of a market downturn—or the arrival of a compelling investment opportunity.

Until now, though, options for holding and growing cash in Canada have been limited to high-interest savings accounts (HISAs), guaranteed investment certificates (GICs) and money market funds (MMFs). So, the arrival of an accessible notice savings account (NSA) is great news for those seeking an alternative. (Note: The EQ Bank Notice Savings Account is not yet available in Quebec.)

Read on to learn all about EQ Bank’s brand-new Notice Savings Account, which offers 4.50% or 5.00% interest, depending on which option you choose. See why it’s a great option for short-term and medium-term savings goals. 

sponsoredEQ Bank Notice Savings Accountgo to site

Monthly fee: $0

Interest rates: 4…

The Bank of Canada made a long-awaited rate cut on June 5, but the effects of lower mortgage rates have yet to trickle down into housing market data. That was evident in May, as real estate affordability continued to worsen for would-be home buyers.

The latest monthly affordability report from Ratehub.ca, which calculates the minimum income required to qualify for a mortgage for the average-priced home in Canada’s major markets, found the measure increased in 11 of the 13 cities studied. (Ratehub and MoneySense are both owned by Ratehub Inc.)  

The report analyzes regional real estate data, as well as mortgage and stress test rates, to see how affordability is changing in real time. In May, the average five-year fixed mortgage rate was 5.49%, resulting in a mortgage stress test rate of 7.49%. (The mortgage stress test requires borrowers to prove they can afford a mortgage at a rate 2% higher than the one they get from their lender.)

May’s decline in affordability was due to a combination of stagnant interest rates—which were little changed from April—and a short-term uptick in home prices in most Canadian cities…