OSFI
is setting a new minimum qualifying rate, or “stress test,” for
uninsured mortgages (Mortgages with more than 20% Down Payment) - Guideline B-20 now requires the minimum qualifying rate for uninsured mortgages to be the GREATER of the five-year benchmark rate (4.89% today) published by the Bank of Canada or the contractual mortgage rate +2%.
· For Example;
Contract rate = 3.09% (today's 5 year fixed rate). Therefore, the client must qualify at 5.09%.
Conservatively, this will reduce someone’s ability to borrow by approximately 20%! |