November 2016

New Stress Test for High Ratio Financing: What It Means for Buyers

Posted on Nov 02, 2016 in Real Estate News and Notes

The federal government introduced a new mortgage stress test for high ratio financing, which applies to homebuyers putting down less than 20% of the purchase price. This stress test requires that buyers qualify at an interest rate that is 2% higher than their actual mortgage rate or at the Bank of Canada’s benchmark rate—whichever is greater. This...

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