Interested in learning more about property mortgages in Canada? Look no further!
Latest News
RBC bracing for renewal impact: three quarters of its mortgages to see higher rates by 2026 Dec 4th
Despite interest rates having been elevated for over a year, Canada's largest bank said the bulk of the impact is yet to be felt with nearly three quarters of its mortgage portfolio coming up for renewal over the next three years..... More »
Is the family responsible to pay the mortgage for a loved one who has passed away? + MORE Aug 18th
When someone dies and owes money on a mortgage, is their common-law spouse responsible for paying it off? The house was in the name of the deceased only—the common-law spouse wasn’t a co-signer on the mortgage, and her name is not listed on the deed. —Louine
You’re 2 minut.... More »
A $200,000+ income is now needed to qualify for an average mortgage in Toronto & Vancouver Dec 22nd
High home prices and rising interest rates over the course of 2022 have made it significantly harder for buyers to qualify for the average mortgage, driving RBC's affordability measure to its worst-ever level..... More »
MoneySense has a new look Apr 25th
We have exciting news: MoneySense has made some upgrades. The core of what we do will stay the same—we’ll continue to bring you high-quality content from the best financial experts in Canada—but we have a fresh new look.
Why are we changing?
We want you to have the best possible expe.... More »
How much is the average mortgage payment in Canada? + MORE Aug 12th
There’s a cost-of-living crisis affecting many Canadians in 2023. Despite inflation falling to 2.8% in June, the run-up in prices of 2022 and early 2023 have made many staples, including groceries, unaffordable for everyday people. Meanwhile, the Bank of Canada’s (BoC) efforts to bring infla.... More »
Can Canadians Stand Up to a Tougher Stress Test?
– canadamortgagenews.ca
Buying a home in Canada just got a lot more stressful. Recently, the OSFI’s stress test has become substantially more challenging to pass – and hardly anyone noticed. The qualifying rate is now as high as 6.00%. If it wasn’t hard enough to purchase a home in Canada, now it’s even harder. And if rates keep going up as they’re predicted to, it’s not going to get any easier.
What Is a Stress Test?
To ensure homeowners can withstand future rate changes, federally regulated mortgage lenders are required to administer a stress test. This stress test uses what’s called a “qualifying rate” to ensure that you can continue to afford your home in the event rates increase in the future. The qualifying rate will always be much higher than your actual rate. Right now, it’s whichever is higher between 5.25%, or your contract rate + 2.00%. For example, if you found a fixed rate mortgage of 3.69%, you would be stress tested at 5.69%.
Why Does This Matter?
The last time the OSFI raised the qualifying rate was about a year ago…
