As you may be aware, any mortgage application must be approved at a 'stress test' interest rate which is higher than the actual contract rate you will be paying. This rate has been set, for years, by the 'big 6 charter banks' at their posted rate currently 5.19%  With increasing pressure (and lobbying) by the mortgage broker industry, OFSI (Office of the Superintendent of Financial Institutions)  has agreed to review the stress test which they admit, is not playing the role intended.

 

What this means is that OFSI may untie the stress test and set it at a more realistic margin. This may allow purchasers, and those looking to re-finance their homes the ability to qualify for a slightly higher mortgage.

 

For more information, contact Cathy at 403-660-1169 or cathy@mortgagesbycathy.ca or click on the following link:   https://www.canadianmortgagetrends.com/2020/01/are-changes-to-the-stress-test-qualifying-rate-coming/

 

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