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Mortgage Stress Test Changes

June 17, 2021

As of June 1st 2021, the government has tweaked the qualification rate, in essence, increasing it from 4.8% to 5.2%. What does this mean to MonsterMortgage.ca clients?


With variable rates as low as 1.45% and fixed rates as low as 2%, it means that you need to have the financial ability to borrow money at a rate that higher than the “going rate.” It is a bit unusual but this financial test or “Stress Test” gives the financial system added comfort knowing that consumers can handle a shock in their future payments.


One thing is clear, until real estate prices stabilize and rates normalize, The Bank of Canada, The Office of the Superintendent of Financial Institutions (OSFI), and even Canada Mortgage and Housing Corporation (CMHC), will continue to scrutinize all areas of mortgage financing. However, despite the current headwinds, MonsterMortgage.ca is here to help. We’ll embrace these new changes and make every effort to effectively communicate the proper expectations to every homeowner over the coming year and be as transparent as possible as we navigate through the new mortgage landscape in Canada.