Homebuyers to Face More Stringent Mortgage Stress Test After June 1

Author: Ebrahim Haghighi Licensed Mortgage Broker | May 19, 2021 | Categories: Business Loans , Commercial Mortgage , Debt Consolidation , First-Time Home Buyer Mortgage , Home Equity Line of Credit , Mortgage Professional , Mortgage Refinance , Mortgage Services , New to Canada Mortgage , Private Mortgage , Real Estate Broker , Real Estate Services , Self-Employed Income

Canada’s banking regulator has proposed changes that would strengthen the stress test applied to uninsured mortgages.

The Office of the Superintendent of Financial Institutions (OSFI) unveiled its proposed changes on Thursday, which would require borrowers applying for uninsured mortgages—typically those with more than a 20% down payment—to qualify at their mortgage contract rate plus two percentage points or 5.25%, whichever is higher.

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Original Article Source Credits: canadian mortgage trends, https://www.canadianmortgagetrends.com

Article Written By: Steve Huebl

Original Article Posted on: April 8, 2021

Link to Original Article: https://www.canadianmortgagetrends.com/2021/04/homebuyers-to-face-more-stringent-mortgage-stress-test-after-june-1