Starting in the new year those individuals applying for uninsured mortgages will face tougher rules when it comes to qualifying for a mortgage.
THE NEW MORTGAGE STRESS TEST
As of January 1st, 2018 the Canadian Mortgage and Housing Corporation has released a new stress test that home buyers will need to qualify for before receiving an approval. Currently those buyers with down payments of 20% or more do not require mortgage insurance through CMHC. According to the Financial Post, This market will now need to
“Qualify based on either the Bank of Canada posted rate for the five-year fixed rate product or two percentage points above their contracted mortgage rate, whichever is higher.”
Currently uninsured buyers can qualify…