Edmonton Mortgage Blog
Your Edmonton Mortgage Broker: Natalie Wellings
New stress test for conventional mortgages
October 17, 2017 | Posted by: Natalie Wellings
Current mortgage rules state that borrowers who put more than 20% down on a home DO NOT have to qualify for a mortgage with a stress test.
The stress test ensures that borrowers qualify for the mortgage at a much higher rate using the Bank of Canada benchmark as a guide. The current stress test qualifying rate is 4.89%.
Starting on January 1st 2018 ALL borrowers will have to pass the stress test to qualify for a mortgage, regardless of the size of your down payment.
This is a big change that will affect all mortgages WITHOUT default insurance.
The vast majority of first time buyers have less than 20% down and have been qualifying with the stress test for months so it’s not a big deal. However, if you were planning on buying a property with 20% down, or more, you will need to get in touch with your mortgage professional to find out how much this new rule will impact you. Read more HERE.
If you have any questions please drop me a line @ 780-722-6287 or natalie@youredmontonmortgage.com
