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Could You Pass The Mortgage Stress Test? Here’S How To Find Out

Could you pass the mortgage stress test? Here’s how to find out

Global News - March 23rd, 2018

As of Jan. 1, Canadians getting, renewing or refinancing a mortgage might have to undergo a stress test, proving that they would be financially OK even if interest rates were to rise substantially above their actual mortgage rate.

That’s because new federal guidelines came into effect at the beginning of the year. They require all federally regulated financial institutions to vet borrowers’ applications using a minimum qualifying rate equal to the greater of the Bank of Canada’s five-year benchmark rate (currently 5.14 per cent) or their contractual rate, plus two percentage points.

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