Buy your first home with confidence
We’ll help you navigate the new Canadian mortgage rules to find your perfect mortgage.
We’ll help you navigate the new Canadian mortgage rules to find your perfect mortgage.
As of January 1, 2018, all federally regulated financial institutions are required to vet borrowers’ applications using a minimum qualifying rate. This is called the Canadian Mortgage Stress Test. The rate you are tested at is determined by the size of your down payment.
Due to the current economic climate, the proposed changes for April 6th have been postponed by the Office of the Superintendent of Financial Institutions until further notice.
Please check back for updates.
On April 6, 2020 the Department of Finance will be changing the current rules of the Canadian Mortgage Stress Test. The following changes will occur:
With less than a 20% down payment the rate at which you are tested will decrease (in most cases) compared to the stress test rate used prior to April 6th 2020.
The rate is expected to be readjusted weekly based on the current 5 year median rate plus 2%. We will keep you posted on Bank of Canada developments.
With interest rates falling to record lows there may be an opportunity to refinance your mortgage at a considerably lower rate. This can save you thousands. Call 519-341-1299 today for details.
Have questions about how much you qualify for and how the new Canadian Mortgage Stress Test updates will affect you? Give us a call. We have been helping Canadians achieve their financial goals since 2001.
The "financial stress test" is a federal guideline that is designed to protect Canadians to ensure they will be okay financially if interest rates were to rise substantially above their current mortgage rate.
The stress test ensures ALL Canadians are capable of borrowing money with the longevity of their mortgage at top of mind.
This means borrowers will qualify for about 20% less, on average. You won't have to pay any extra for borrowing, but you won't be able to borrow as much.
Our tools factor in the stress test. They are free, simple to use and take only minutes to determine how much you can borrow. Curious?
The amount you can borrow is tested at a higher rate based on the amount of your down payment. This ensures Canadians will be able to keep their standard of living if rates raise during the life of their mortgage. Based on your down payment you can expect one of the two options below.
Borrowers that have a down payment between 5% and 20% will be tested at the Bank of Canada conventional five-year mortgage rate
Borrowers that have a down payment of 20% or higher will be tested at the highest rate of the following:
Our mission is to help Canadians reach their financial goals. We can answer all your questions and get you started. Apply online or come meet us.
Mortgage Associate
Buying your first home can be complicated. Having the right tools ensures you can make the best choice for your biggest purchasing decision.
Great mortgages are more than just a great rate. Our industry leading tools allow you to compare rates, penalties, and mortgage features from over 45 lenders. This ensures you get the perfect mortgage to match your lifestyle. Our processes are thorough; this ensures new homeowners have the most accurate information to make the largest purchase their lives.
The best way to get the best rate is for us to understand you and your lifestyle. We promise to match a mortgage perfect to your unique situation. Thinking of starting a family? Investing in a fixer-upper? Let us position you for success.
* On accepted credit. Mortgage rates vary based on your credit score, assets, liabilities, down payment ratio, and a number of other factors. The best way to determine your true pre-approved rate is to call us at 1-877-341-1299. Rates are subject to change without notice.
