Bank of Canada lowers qualifying rate used in mortgage stress tests – BNNBloomberg.ca
For the first time in three years, the Bank of Canada has lowered the qualifying rate. This is the rate used in the mortgage stress test to determine if someone qualifies for an insured and also for uninsured mortgages. The move is meant to act as a stimulus for the housing market, since it increases demand by creating more qualified homeowners. Home sales have been week in Canada for the last year, so the Bank of Canada could be looking to boost the marketplace.
“The Bank of Canada has lowered the rate used by mortgage stress tests to determine whether would-be homeowners can qualify, marking the first drop in three years.”