It is now official, the mortgage stress-test rate used to qualify insured and uninsured mortgages increased June 1st, 2021 from 4.79% to 5.25%. This change reduces the amount of mortgage a household can qualify for by about 5%.
If you have been pre-approved and have not purchased before today you will need to be re-qualified using the new stress test rate.
The purpose of the mortgage stress test is to ensure borrowers don’t get in over their heads if the mortgage rates increase in future. Here is a link to the Financial Post for more details.
If you still have questions, gives us a call or send us an email, we have great mortgage lenders we can refer you to.