Drop in Bank of Canada Stress Test Qualifying Rate

Author: Home Resolution | Mar 25, 2020 | Categories: Buying a Second Home , Century 21 , First Time Home Buyer Mortgage , GTA Real Estate , Home Equity Line Of Credit , Homes For Sale , Houses For Sale , Mortgage Agent , Mortgage Broker , Mortgage Edge , Mortgage Property , Mortgage Renewal , Mortgage Services , New To Canada Mortgage , Purchase Mortgage , Real Estate Agent , Real Estate Services , Realtor , Reverse Mortgage , Switch Mortgage

Following the announcement made by Bank of Canada on July 10 that they are holding the overnight interest rate steady at 1.75%, yesterday Bank of Canada dropped the benchmark qualifying rate used in the Stress Test from 5.34% to 5.19%.

This is good news because home buyers will be qualified for a higher purchase amount and homeowners could refinance for a higher amount, up to 80% loan to value nevertheless.

TD has issued confirmation to the broker channel recognizing this drop and will make it into effect starting from July 22, 2019.

If you were not in the market to buy a home, you want to contact us for a pre-qualification and find out how much you can afford. We offer a free pre-qualification service.