On July 19, 2019, the Bank of Canada has announced that they will be dropping the stress-test qualifying rate from 5.34% to 5.19% - effective July 22nd, 2019. This is the first stress-test drop since 2016. Although the stress-test drop does not affect the buyer's borrowing power by much, it still alleviates the pressure off of a lot of first time home buyers!
How much more can a borrower borrow?
The drop in the stress-test interest rate will increase your client's borrowing power by 1.665%
Any questions? Get in touch with me at jessica.kuan@cleartrust.ca
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