It’s now been more than a year since the stress test came into effect. The policy requires that you qualify at 2% higher than your agreed upon rate with your lender. This test applies whether you put down more or less than 20% on the home.
At the end of 2018, I wrote about the idea of reducing or repealing the mortgage stress test. Now I want to suggest some possible amendments that would make the stress test more fair now that interest rates are rising and home prices are still high.
Getting pre-approved is one thing, but when it comes to applying for a mortgage, the process can be confusing and intimidating, especially if you’re a first-time buyer. There’s an extra layer to the process if you’re buying a new
The Canada Mortgage and Housing Corporation released the results of its annual Mortgage Consumer Survey, providing insights on the behaviour, attitudes, and expectations of Canadians who are acquiring, renewing, and refinancing a mortgage.
Saving a sufficient down payment is tough enough on its own and when coupled with rising interest rates and tough qualification rules – which includes a mortgage stress test– affording a home becomes very difficult for some.
If you’re a first-time buyer and your occupancy is quickly approaching, a whole series of things you’ve never had to deal with before are about to happen. There may be some stuff you don’t understand, and some of it can actually get confusing.