On Monday, The Department of Finance made changes to mortgage qualification rules which will have a huge impact on all insured mortgages.  As of October 17th, all insured mortgages must pass a ‘stress test’ to ensure homeowners can continue to afford their homes in situations such as a higher rate environment or in the event of income loss.  By factoring in this new stress test, homebuyers will qualify for approximately 15-20% less than they do today.


If you make $75,000 per year and you put 5% down, today you can qualify for $440,000, based on the 5 yr fixed rate of 2.49%.

Starting October 17th:

Even with the same 5 yr fixed rate of 2.49% you will be qualified at the Canada Bank benchmark, currently at 4.64%, which means you will only be able to qualify for $360,000 a difference of $80,000*

What does this mean for you right now?

If you’ve been thinking about buying a home in the next four months give us a call at 1-877-341-1299 as we may be able to save you some money. Or, if you just have some questions you’d like to ask about the changes, you can call us for that too. We’re happy to help!

In the long term, we believe these changes are good for the Canadian Economy as it potentially could create a smooth landing against the dreaded “bubble burst”.


*Example based on income only. Other factors will impact qualifying amount. Some conditions apply. OAC.