Mortgage stress test interest rate increases for fifth time in the last year
The Bank of Canada’s interest rate for mortgage stress testing has increased from 5.14 per cent to 5.34 per cent. The rate had stood at 5.14 per cent since mid-January.
This is the fifth time the Bank of Canada has raised its rate since last May, when it sat at 4.64 per cent.
The rate is determined based on a survey of conventional five-year rates available at Canada’s big banks.
Since Jan. 1, all homebuyers have had to go through the mortgage stress test, which involves qualifying for the greater of either the Bank of Canada qualifying rate or the buyer’s contracted interest rate plus two percentage points.