New stress test level makes it harder to qualify for a mortgage in Canada

Author: External Author | | Categories: First Time Home Buyer , Mortgage Broker

t's a bit harder to qualify for a home loan as of today, as the federal government has raised the minimum financial bar that anyone applying for a mortgage must meet.

Ottawa raised the level of the "stress test" for mortgages today, setting the new level at 5.25 per cent — or two full percentage points above the borrower's mortgage rate, whichever is higher. That's an increase of about half a percentage point from where it was before.

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Original Article Source Credits:   CBC ,https://www.cbc.ca/

Article Written By:  Pete Evans

Original Article Posted on:   Jun 01, 2021

Link to Original Article:https://www.cbc.ca/news/business/stress-test-mortgage-real-estate-1.6046758



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