Stress Test Changes Make Mortgage Qualifications Easier

by | Mar 16, 2020 | Interest rates, Mortgages

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We’ve been hearing a lot of news lately that Mortgage Qualifications are changing for Canadians.

The Government of Canada recently announced adjustments to the well-publicized stress test for insured mortgages. The change basically means that those applying for a mortgage can now qualify for a larger mortgage. This new adjustment will take effect on April 6th.

All the turmoil in the financial market these days and the potential slow down of the economy, due to concerns over the spread of the coronavirus and many other factors, have created an opportunity if you’re looking to get a mortgage. The Bank of Canada has just announced a 0.5% reduction to their benchmark interest rate which is now at 1.25%. This should lead to lower mortgage interest rates which is great for Canadians who either currently have variable-rate mortgages or are looking to get a new mortgage.

With rates heading lower and with easier mortgage qualifications requirements, now is a great time to get your mortgage for your first home or your next home. Get ahead of the spring market and contact us to get your mortgage pre-approval.

Typically, spring is also the time when many mortgages are coming up for renewal. If your mortgage is up for renewal soon, the timing couldn’t be better to explore all your options and take advantage of lower rates. You can even look at refinancing your mortgage to access some of that built-up equity to use for renovations or pay off debts.

Call or email us today to get started.