NEW stress test changes effective June 1, 2021
To my valued clients & friends,
Despite previous announcements OSFI (banking regulators) have announced that the new benchmark stress test rate will apply to ALL MORTGAGES as of June 1, 2021.
who will be affected:
- first time buyers
- anyone with less than 20% down purchasing
- anyone with more than 20% down purchasing with an A lender
- anyone looking to refinance their existing mortgage with their current lender or with a new lender
- anyone looking to change lenders at their mortgage maturity for a better interest rate or product
- anyone looking to add a line of credit or second mortgage
It is worth noting clients with a pre-approval in place need to ensure that their pre-approval was completed at the new higher benchmark stress test rate. Anyone tested at the old rates of 4.79% instead of the new 5.25% could be out shopping for a home they cannot get approved for. Let us know if you would like us to run the numbers for you to double check!
If you have any questions around mortgage options, or are simply looking for advice please reach out to me. I am always available to communicate with you.