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New Mortgage Rules Coming April 6th, 2020

Blog by Gord Honor | March 10th, 2020

New Mortgage Rules

The mortgage stress test that was implemented in 2018 to help ensure that Canadians purchasing homes didn't get in over their heads if the rates change and they can no longer afford their mortgages. The current Stress Test applies to all homebuyers and based on the 5 year benchmark rake posted by the Bank of Canada. That is you have to qualify for a rate that is currently approximately 5.19%. The new rules only apply to home purchasers with less than  20% for a down payment and the rate is based on the weekly median five-year fixed insured mortgage rate. Currently, this rate is 4.89% This boils down to more people being able to qualify for mortgages, especially those with more than 20% down.