This is news that just came across minutes ago (April 8th 2021) that could be important news for those out there looking to buy:
The Office of the Superintendent of Financial Institutions (OSFI) is opening consultations today on a proposal to uncouple the uninsured mortgage stress test from the Bank of Canada’s posted 5 year rate, and instead set it at the greater of the mortgage contractual rate plus 200 basis points or 5.25%. The proposed change would effectively increase the qualifying floor from today’s 4.79% by 46 basis points.
What this translates to is that it “will be harder to qualify” for some and reduce shopping budgets for others.
The consultation invites interested stakeholders to provide commentary by May 7th, 2021. OSFI will communicate its final amendments on May 24th, 2021, with an enforcement date of June 1st, 2021.
And that means that “it doesn’t matter what you’ve been prequalified for today, it could change on June 1st” so please plan accordingly and if you have questions… Peter at EasyApproval.ca is who you reach out to for answers!