Lower Stress Test Gets You More
Great news! Bank of Canada is lowering the benchmark mortgage stress test from 4.94% to 4.79%, which means you could qualify for a little more as of August 17, 2020.
For example, a buyer with $70K annual income could qualify for approximately $5K* more, which may be just enough to make the deal work where sellers refuse to budge on price. (*assumes $1,200 annual heat, $2,400 annual tax)
Note the stress test for uninsured mortgages remains the greater of the benchmark rate or the “contract rate + 2%”, but with rates as low as they are, few scenarios would trigger the “+2” clause.
A deeper cut would have been preferred, but every little bit helps. Curious what you qualify for? Let’s chat 250-550-8272.