What Impact will the Stress Test have when Renewing Your Mortgage? Feb 28th

Learn more about Canadian mortgage rates, rules and the latest news – read on!
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What Impact will the Stress Test have when Renewing Your Mortgage?
So, your mortgage is coming up for renewal this year. You’ve probably been in your mortgage for at least three years – but likely closer to five, as this is the most common term.
Does the mortgage stress test affect you? Absolutely! And, here’s how…

SCENARIO 1: Your current mortgage is a five-year fixed-rate term. Your rate is probably at or below 3%. Let’s use 2.89%, as many of my clients were averaging this rate back then. Five years ago, you were qualified using your actual rate. So, in this case, 2.89%. Let’s say you took a 25-year amortization with an original balance of $400,000, equalling $1,871 in monthly payments. Today, your balance is $340,000. How much income did you need to qualify back then? $73,000 per year.
Fast forward to today. It’s renewal time and you’re ready to shop for rates. Of course, your Mortgage Broker has contacted you or you’re going to call an experienced Mortgage Broker to ensure you’re getting the best rate…

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