The mortgage stress test requires lenders to check that a borrower can still make the payment at a rate that is higher than the actual mortgage rate
When you apply for a mortgage, you will be offered a contracted rate; hopefully, this will be as low as possible; however, your lender needs to check that you will be able to pay back your mortgage based on the Bank of Canada qualifying rate
This means that your income needs to be high enough and your existing debt low enough, to be able to pay down your mortgage at that higher rate
Current Bank of Canada qualifying rate is 4.79% (from 01 June, it may increase up to 5.25%!)
Contact Samary, your trusted mortgage agent for a quick Pre-Approval