The new federal mortgage stress test comes into effect on June 1st. The stress test requires all home buyers to qualify at a five-year mortgage rate of 5.25%, up from the current stress test level of 4.79%. This stress test will reduce borrowing power by approximately 4% to 4.5%.
If you’re thinking about buying a home this year you will want to chat with a Mortgage Broker to confirm how this will affect your ability to borrow and your affordability. For some Buyers this could mean little and others could be impacted more significantly.
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