NEW CHAGES TO STRESS TEST

Dated: May 26 2021

Views: 89

NEW stress test changes effective June 1, 2021

To my valued clients & friends,

Despite previous announcements OSFI (banking regulators) have announced that the new benchmark stress test rate will apply to ALL MORTGAGES as of June 1, 2021.

who will be affected:

- first time buyers

- anyone with less than 20% down purchasing

- anyone with more than 20% down purchasing with an A lender

- anyone looking to refinance their existing mortgage with their current lender or with a new lender

- anyone looking to change lenders at their mortgage maturity for a better interest rate or product

- anyone looking to add a line of credit or second mortgage

It is worth noting clients with a pre-approval in place need to ensure that their pre-approval was completed at the new higher benchmark stress test rate.  Anyone tested at the old rates of 4.79% instead of the new 5.25% could be out shopping for a home they cannot get approved for.  Let us know if you would like us to run the numbers for you to double check!

Here is the full announcement link if you would like to read it.

https://www.canada.ca/en/department-finance/news/2021/05/statement-by-the-deputy-prime-minister-and-minister-of-finance-on-the-canadian-housing-market.html?fbclid=IwAR0rX9798OvdQC9p1zODZ3WETPiwkNgdAtYeRu1_UDj-sVaFjeiu6Zse4kk

Blog author image

Melody Sitchon

Melody Sitchon, ABR, SRES and Broker. She is an active Broker of Record, representing buyers and sellers on a day-to-day basis, and considers education for her clients an important part of her role as....

Latest Blog Posts

The federal government will pay up to $5,000 to make your home more energy efficient

The federal government will pay up to $5,000 to make your home more energy efficient     **Starting today, May 27-2021, Canadians will be able to apply online for $5000

Read More

NEW CHAGES TO STRESS TEST

NEW stress test changes effective June 1, 2021To my valued clients & friends,Despite previous announcements OSFI (banking regulators) have announced that the new benchmark stress test rate will

Read More

Renovations That Pay Off on Resale

If you’re planning to do some home renovations that pay off on the resale market, you’re not alone. Renovations are the premise behind many successful house-flipping careers,

Read More

OFSI Announcement and What it Means for You as a Buyer

The OSFI announced today they are re-opening the discussions around the qualification rates for the stress test in Canada. Right now the qualification rate for best interest rates used for the

Read More