- 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