BREAKING: IT JUST GOT HARDER TO QUALIFY FOR A MORTGAGE

May 10, 2018 | Posted by: Kim Lindsay

An important number that affects the ability of millions of Canadians to qualify for a mortgage has just gone up.

The Bank of Canada has increased its Benchmark rate from 5.14% to 5.34%.

Important note: this is NOT your contract rate, but the rate that is used for the stress tests for borrowers with less than 20% down payment where mortgage default insurance (CMHC, Genworth, Canada Guaranty) is required. For borrowers who do not require mortgage insurance, the qualifying rate is is the GREATER of this Benchmark rate OR your actual contract rate PLUS 2%.

The Canadian Press says that the rate increase coincides with an estimated 47% of mortgages that are due for refinancing in 2018, based on a CIBC Capital Markets report.

TD Bank was the first to rate their 5-year posted rate last month and now all Big Six banks have followed.

MORTGAGE QUESTIONS???
CONTACT ME: KIM LINDSAY, 780-221-0133, kim@kimlindsay.ca

Pre-Approvals / Rate Holds
Purchase / Refinance / Debt Consolidation / Renewals

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