On June 1st, 2021, the Canadian bank regulators, Office of the Superintendent of Financial Institutions (OSFI), implemented the new Stress Test requirements.
On June 1st, the "Stress-test” increased from 4.79% to 5.25%. Meaning that buyers will have to prove they can afford to pay a mortgage rate of 5.25% when they apply for a mortgage loan or pre-approval. This is going to equate to a reduction in mortgage size of approximately 4 to 5% for prospective buyers.
The only buyers who will be grandfathered under the old rate guidelines are those who have live purchase agreements in place with a live arranged mortgage in place matching that property.
If you were pre-approved prior to June 1st, contact your lender to discuss further.
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