New Qualifying Rate Effective April 6, 2020

Before I get into it allow me to say that I LOVE the great publicity as a result of this change. We needed some good news for consumers and we got it. Without further ado… A new Benchmark Rate for insured mortgages will replace the Bank of Canada 5-Year Benchmark Posted Rate in determining the minimum qualifying rate (stress test). The new Benchmark Rate will be: The weekly median 5-year fixed insured mortgage rate as calculated by the Bank of Canada from federally-backed mortgage insurance applications adjudicated by mortgage insurers; plusA buffer of 200 basis points to be set by the Minister of Finance upon the coming into force.The Benchmark Rate will be published on a Wednesday and come into effect the following Monday. The…