Edmonton Mortgage Blog

Your Edmonton Mortgage Broker: Natalie Wellings

Changes to the stress test announced!

February 18, 2020 | Posted by: Natalie Wellings

After mounting pressure to adjust the onerous stress test, federal Finance Minister Bill Morneau, announced a relaxing of the overly stringent test which has made qualifying for a mortgage difficult in recent years.

The current rule has borrowers qualifying at the Bank of Canada benchmark rate which currently sits at 5.19%. Under the new rules, the qualifying rate will be the weekly median 5-year fixed insured mortgage rate plus 2.00%. As an example, if the median weekly 5-year interest rate is 2.79% then the qualifying interest rate would be 4.79%.

On a $100,000 mortgage the difference between 5.19% and 4.79% is $22.76/month.  

The change comes into effect on April 6th.

If you have questions about this new change please contact me!

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