The Federal Government has announced yet another important mortgage rule change in efforts to cool the housing market by implementing what they call a “stress test”.

In other words qualifying for a mortgage just got a whole lot more difficult.

Effective October 17th all insured mortgages are required to QUALIFY for their mortgage using the current Bank Of Canada Benchmark rate of 4.64% compared to using the ACTUAL rate that currently ranges from 2.39% – 2.44%.

Anyone that is currently in the market to purchase a home or refinance a mortgage but have not yet made an offer or committed a live mortgage needs to RE-QUALIFY immediately.


Let’s put this new rule into perspective……

A couple with a $100,000 income, no debts and 5% down payment can currently qualify for about a $484,000 home purchase using the current 5 year fixed rate of 2.44%

That same couple having to qualify at the bench mark rate of 4.64% now qualifies for a $421,456 home.

That is $62,544 less buying power!

All in effect by Oct 17th.

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