Changes to the Mortgage Stress Test - June 1, 2021

May 20, 2021 The Office of the Superintendent of Financial Institutions (OSFI) and the Minister of Finance announced starting June 1, 2021 the new qualifying rate (stress test) will increase to 5.25% or the contract rate plus 2% whichever is higher for uninsured and insured mortgages. This is an increase from the current rate of 4.79% and will reduce homebuyer’s maximum qualifying amount by approximately 4%.

If you have questions on how this change will affect you or your current pre-approval please give me a call!