Mortgages in Canada can be a murky subject – one that we hope to shed some light on with a series of highly informational articles.
Have you received a different credit score from a credit monitoring website than you did when applying for a car loan or mortgage? This isn’t just surprising for you: it’s a likely result. Canadians can use several free credit report sites to monitor their credit; they can also pay for .... More »
Bank of Canada rate cut increasingly likely amid coronavirus fears, economists say - Global News Mar 2nd
Bank of Canada rate cut increasingly likely amid coronavirus fears, economists say Global NewsCoronavirus rate cut could open Poloz's finale at Bank of Canada BNNBloomberg.caBoC Increasingly Likely to Deliver a Surprise Rate Cut This Week - Mortgage Rates & Mortgage Broker .... More »
You’re two years into your mortgage term. You’ve got a great rate, or so you thought? But now you aren’t sure. With so much talk about record low interest rates, you begin to question. Maybe there’s a better deal out there? Did you choose the right product and lender? Has you.... More »
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 »
It’s been almost a couple of years since the mortgage stress test came into effect. So, we thought it was the perfect time to revisit it and clear up any confusion. The mortgage stress test took effect January 1, 2018, affecting how much mortgage money Canadians are able to borrow towards the purchase of a home.
Let’s look at the mortgage stress test in greater detail and what it means for those planning to buy a home in the coming months.
What’s the Mortgage Stress Test?
Whether you’re buying a home with more or less than 20 percent down, the stress test affects you. Before the new stress test came into effect January 1, 2018, depending on the length of your mortgage term, you might have only had to qualify based on your mortgage rate. However, now everyone is required to pass the stress test in order to get a mortgage.
To pass the stress test, you must be able to prove that you can afford the greater of your mortgage rate plus two percent and the Bank of Canada’s five-year benchmark rate (currently at 5…