Locked Out of the Market: How the Mortgage Stress Test Could Be Hurting Homebuyers Mar 12th

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 mortgage buyout

CMHC’s Gloomy Outlook: Up to 18% Drop in Home Prices, 20% Arrears Rate + MORE May 23rd

The head of the Canada Mortgage and Housing Corporation delivered a particularly gloomy forecast while testifying remotely before the House of Commons Finance Committee on Tuesday. Among those predictions, CMHC CEO Evan Siddall said: Home prices could fall from their peak by 9% to 18% over the next .... More »
 home loans

Retired? No mortgage for you: How the stress test is making it tougher to borrow later in life Nov 6th

Many people are shocked to discover that the amount they can borrow decreases drastically when they retire because the stress test looks at your income..... More »

Canadians Need Guidance With Their Mortgages + MORE Oct 3rd

That’s the takeaway from a national survey released this week by Rates.ca, which found half of Canadians aren’t aware of the mortgage options available to them. Not only that, but Canadians are lacking in some other basic mortgage trivia, with an astounding 9 out of 10 respondents not kn.... More »

Latest in Mortgage News: Newton Launches Rate Search Engine “Discovery” + MORE Oct 13th

Newton Connectivity Systems this week launched its new broker rate search engine, Discovery. The system, which also serves as a rate distributor for lenders, promises to improve efficiency and the quality of service brokers can provide to their clients, Kevin Dear, VP of Broker Experience at Newton,.... More »
 property

Mortgage Industry Reacts to Liberal Budget + MORE Mar 21st

Hoping for minor tweaks to the mortgage stress test, the Liberal government’s 2019 budget instead left many in the industry underwhelmed and with more questions than answers. The stress test was left untouched, and instead Finance Minister Bill Morneau announced two key changes aimed at easing aff.... More »
Locked Out of the Market: How the Mortgage Stress Test Could Be Hurting Homebuyers
It was created with the intention of saving Canadians from becoming over-burdened with their mortgages, but some critics of the Canadian government’s mortgage stress test say it is slamming the door on first-time homebuyers who would otherwise be able to break into the market. In a recent opinion article in the Financial Post, Christopher Alexander, who is executive vice-president and regional director of RE/MAX INTEGRA for Ontario-Atlantic Canada, writes the stress test “is causing more harm than good.”
The stress test requires homebuyers that make a down payment of less than 20 percent to qualify for an interest rate that is at or higher than the Bank of Canada’s five-year benchmark rate (5.34 percent at the time of writing). In 2018, it was expanded to homebuyers who put down 20 percent or more; they now need to qualify for a mortgage rate two percent higher than the one offered by their lender (or the Bank of Canada’s rate five-year benchmark rate, whichever one is higher)…

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