New Conventional Mortgage “Stress Test” Rules

New "Stress Test" Mortgage Rules

The decision has been made by the Office of Superintendent of Financial Institutions (OSFI) to proceed with the mortgage rules they proposed earlier this summer. OSFI is an independent agency of the Government of Canada that reports to the Minister of Finance. It was created to contribute to public confidence in the Canadian financial system. OSFI is the sole regulator of […]

New Mortgage “Stress Test” Proposal

2017 Mortgage Stress Test Proposal

Many home buyers with less than a twenty percent down payment have been affected by the mortgage “stress test” rule that the government of Canada enforced October 2016. The “stress test” requires homebuyers who take a default insured mortgage to qualify at the Bank of Canada’s five-year post interest rate, reducing buying power by approximately […]

CMHC Increasing Mortgage Premiums

Mortgage Premium Increases

For the third time in three years, Canada Mortgage and Housing Corporation (CMHC) will be raising its default insurance premiums. Effective March 17, 2017 premiums are increasing anywhere from 11 percent on a minimal down payment mortgage to as much as 225 percent on lower loan to value mortgages. The announcement was released on January […]

New Mortgage “Stress Test” Tips

New Mortgage Rule Tips

The new mortgage “stress test” rule is now in effect. It impacts those purchasing a home with less than a 20 percent down payment, therefore requiring default insurance. Canadians applying for a default insured mortgage are required to qualify at the Bank of Canada’s five year posted interest rate (the benchmark qualifying rate) on all […]

New Mortgage Rules Coming to Canada Soon

New Qualifying Mortgage Rules

The Government of Canada announced new mortgage rules that will be coming into effect on October 17, 2016. The rules will directly impact those purchasing a home in Canada with less than a twenty percent down payment. Canadians applying for a default insured mortgage (high-ratio mortgage) will be required to qualify at the Bank of […]