Effective April 6, 2020, Canadians expect to see changes in the "Stress test" 

These changes will impact anyone getting an insured mortgage, those putting down less than 20 per cent on a new purchase.

What is changing?

Right now people getting insured mortgages must prove they can afford a payment based on the benchmark five year posted rate. The Bank of Canada calculates this rate from typical big bank rates and it’s currently sitting at 5.19 per cent.

As of April 6 2020, a new benchmark rate will be used. It’ll be based on the country’s median five-year fixed insured mortgage rate, plus two per cent. If it were in existence today, it would be about 4.89 per cent, says the Department of Finance. That’s 30 basis points less than the…

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