Mort­gage stress test in­ter­est rate in­creases for fifth time in the last year

StarMetro Calgary - - COOL STUFF -

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.

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