Bank of Canada Lowers the Qualifying Rate
Bank of Canada has dropped the qualifying rate (stress test) from 5.04% to 4.94%
This increases the purchasing power for buyers
Home buyers qualify for roughly 2% more
How much more?
Qualifying Rate of 5.04%
Maximum Mortgage: $400,000
Qualifying Rate of 4.94%
Maximum Mortgage: $410,000
This change isn't humungous, but it can help buyers push their applications that are just underneath the threshold.