How the new mortgage 'stress test' will affect homebuyers
In an attempt to try and cool down the overheated housing market, the federal government is making it tougher to get a mortgage starting June 1.
The new stress test was announced by the Office of the Superintendent of Financial Institutions on May 20. Starting Tuesday, the new calculation of the minimum qualifying rate for uninsured mortgages will be set at either the mortgage contract rate plus two per cent or 5.25 per cent — whichever one is greater.
Original Article Source Credits: CTV News , https://www.ctvnews.ca/
Article Written By: Tom Yun
Original Article Posted on: June 1, 2021
Link to Original Article: https://www.ctvnews.ca/business/how-the-new-mortgage-stress-test-will-affect-homebuyers-1.5451606