Interested in learning more about property mortgages in Canada? Look no further!
Latest News
The best life insurance in Canada: your complete guide + MORE Sep 14th
Wondering how to get the best life insurance in Canada for you and your family? You’re not alone. The pandemic has shown Canadians that we are not invincible. In fact, a 2021 survey found 44% of us bought or now plan to buy life insurance because of the effects of COVID-19. But not everyone is con.... More »
Some banks rethinking strategy on home mortgage competition + MORE Sep 7th
Some Canadian banks say they're starting to question how aggressively they go after mortgage customers amid intense competition..... More »
Mortgage or retirement savings? Where to get the most bang for your extra bucks + MORE May 4th
Obtaining a mortgage or secured line of credit in Canada at the best rates is often a daunting task. We can help! Read the articles below for more info.
Mortgage or retirement savings? Where to get the most bang for your extra bucks - thestar.comContinue Reading On thestar.com »
The L.... More »
CMLS introduces Aveo Flex 40, Canada’s newest 40-year mortgage + MORE Jan 29th
After its recent acquisition by Nesto, CMLS Group is signalling to brokers that they’re ready to do business, introducing a new partnership program and a 40-year amortization mortgage product..... More »
The bond risk many investors overlook Jul 5th
When you buy a bond, there’s a chance the borrower might not be able to pay you back, but bonds also carry a different kind of risk. Duration, or interest rate risk, is related to a bond’s sensitivity to changes in interest rates.
When interest rates go up, you won’t be able .... 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…
