DETAILS OF NEW PROPOSED CHANGES TO MORTAGE:
The Office of the Superintendent of Financial Institutions met today to discuss a proposal that would change the stress-test qualification model for uninsured mortgages.
They have proposed that the new stress-test qualification rate be increased to the higher of the contract rate plus 200 bps (2%) or 5.25%.
Proposal decisions will come into force by June 1, 2021.
Currently, the stress-test qualification is the higher of the contract rate plus 200 bps or 4.79%.
Here is a link to the Office of the Superintendent of Financial Institutions website with a summary of the meeting.
https://www.osfi-bsif.gc.ca/Eng/osfi-bsif/med/sp-ds/Pages/b20-rmks.aspx
https://www.osfi-bsif.gc.ca/Eng/osfi-bsif/med/sp-ds/Pages/b20-rmks.aspx