Bank Of Canada Lowers Rate Used For Mortgage Stress Tests

     

    The central bank’s five-year benchmark qualifying rate is now 5.19%, down from 5.34%. It’s the first decrease in the five-year fixed mortgage rate since September 2016, when it dropped from 4.74% to 4.64%, and has increased steadily since.

    The decrease in the qualifying rate will increase the buying power for mortgage borrowers by allowing them to afford up to 1.4% more home. Someone putting a 20% down payment on a home who makes $50,000 per year can now afford $4,000 more home.

     

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