The following annoucement below is welcome news for home buyers, we certainly don't want have measures to keep home prices from rocketing out of control and making home ownership out of the reach of buyers wanting to enter the market. Let's see how the market responds to these changes and hope the government will ease the stress test again in the near future.
On February 18, Minister of Finance Bill Morneau announced changes to the benchmark rate used to determine the minimum qualifying rate for insured mortgages, also known as the stress test. The new minimum qualifying rate will be the weekly median five-year fixed insured mortgage rate from mortgage insurance applications, plus two percentage points.
TRREB has long called for adjustments to the mortgage stress test since its introduction in January 2018. The changes will come into effect on April 6 and will allow the rate to be more representative of the mortgage rates offered by lenders and will adjust appropriately to dynamic market conditions.
TRREB is encouraged that Minister Morneau and the federal government are moving in the right direction by making adjustments to Guideline B-20.
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