Effective 11:59PM on August 16th, 2020, Canada’s Mortgage Stress Test rate will fall to 4.79% from the current rate of 4.94%. This will allow borrowers the ability to qualify for a slightly higher mortgage amount. Five-year posted mortgage rates at Canada’s big banks have inched lower in recent weeks, enough to compel the Bank of Canada to formally lower the rate. That testing rate has already been lowered twice throughout the COVID-19 pandemic, first in mid-March when it dropped 15 points from 5.19 per cent to 5.04, and then again in May when it dropped another 10 points to 4.94 per cent.
For more information on how this change can affect your ability to qualify, speak with one of our mortgage specialists by clicking HERE