Quote:
Originally Posted by MillerTime GFG
Just as a heads up for anyone in the market...
OSFI dropped somewhat of a bombshell late yesterday with a decision to implement the new Stress Test qualifying rate of 5.25% to INSURED (less than 20% equity/down payment) mortgages as well as uninsured, up from the current 4.79%. Prior to yesterday, the industry had known for months about the increase to uninsured, but this change was out of left field.
Pretty disappointing decision to only give 10 days notice, but if you're in the market, you may want to pull the trigger soon if you're looking to max your qualifying limits. This new change will decrease qualifying by about 4%.
https://www.canada.ca/en/department-...ng-market.html |
I have very mixed feelings about these stress tests. The idea is to cool the market and make things more affordable for average Canadians (Also to prevent people from taking on too big of a mortgage that could be troublesome later on). However, the stress tests only affect working Canadians, and have no affect on the rich or foreign investors. These are the people really driving the prices up in Toronto and Vancouver.