Bank of Canada increased policy rate by one percent what does it mean for you and your mortgage qualifications?
With mortgage rates rising, qualifying for a mortgage is getting harder. For those who do qualify, it's for less money than they would have gotten even a few months ago. But just because interest rates are rising now, doesn’t mean that will always be the case. buyers still need to be protected from any possible future rate increases. the mortgage stress test determines if you'll still be able to pay your mortgage should interest rates rise.
How to calculate stress test?
minimum qualifying rate or the customer's mortgage interest rate plus 2% - whichever is higher.