The government recently announced a change to the Mortgage Stress Test. Currently, buyers have to be able to afford payments if their interest rate was 2% higher than the Bank of Canada’s average rate. Under the new rules, lenders will use the average industry rate, which is about a half point lower than the BoC’s average rate. It’s not a huge change – MoveSmartly estimates that it will mean buyers will qualify for 3% – 4% more, but it’s a good start.
Check out more details here: https://www.movesmartly.com/articles/how-last-weeks-mortgage-stress-test-change-will-impact-borrowers