What is the qualifying rate or stress test rate for mortgages?

2020-06-25 | 13:19:52

More good news for first time home buyers! The Bank of Canada is set to reduce its qualifying rate ten basis points, from 5.04 to 4.94 percent.

The qualifying rate is the rate we use during your pre-approval process. You must prove you can make payments at this rate. A DECREASE in the qualifying rate means an INCREASE in home buyers purchasing power. Altough it will only increase the amount you can borrow by a few thousand, its a start and every little bit helps. 

Borrowers will enjoy a sliver of extra buying power