How This New Mortgage Rule Could Affect You
In an endeavor to cool down the property market, the Office of the Superintendent of Financial Institutions (OSFI) introduced an amendment to the existing stress test. The change came into effect on June 1, 2021, in Canada.
Consequently, “the new minimum qualifying rate for uninsured mortgages (residential mortgages with a down payment of 20% or more) will be the greater of the mortgage contract rate plus 2% or 5.25%,” according to a statement from the OSFI.
The latest change to the stress test means that homebuyers will qualify for a little less than before. However, while it has made all home seekers sit up and take note, it will have a minor effect compared to when the stress test was first implemented in 2018.
Besides, there are still many strategies to get on to the property ladder that is best explained by a professional. Therefore, if you have any questions regarding the new stress test or need assistance with refinancing, get in contact with Anton Dharmaseelan Mortgages today.
Over the past eighteen years, I have funded approximately two billion dollars worth of mortgages for over seven thousand clients while working for RBC and Mortgage Alliance in Ontario and beyond.
I am currently ranked number one in the GTA and number two in Canada among all Mortgage Alliance agents, which makes me highly sought-after and respected within the industry.
Besides, I have access to all the significant banks, credit unions, trust companies, B Lenders, and private lenders in the GTA. It enables me to match my clients with a suitable lender.
I serve clients across Mississauga, Brampton, Toronto, Vaughan, Hamilton, Markham, Ajax, Guelph, Oakville, Burlington, Milton, and the surrounding areas. My services include refinancing, first-time homebuyer mortgages, purchase mortgages, investment properties, self-employed mortgages, bad credit mortgages, and commercial mortgages.