How Last Week’s Mortgage Stress-Test Change Will Impact Borrowers

Author: External Author | Mar 25, 2020 | Categories: Debt Consolidation , First Time Home Buyer Mortgage , Mortgage Broker , Mortgage Calculator , Mortgage Rates , Private Equity Investors , Private Mortgage Lending , Refinance Mortgage , Reverse Mortgage , Royal Canadian Legion , Self Employed Mortgage

The necessary change would increase buyer budgets today, but likely decrease affordability in hot markets and introduce more volatility for buyers going forward.Last week our federal government announced that on April 6, 2020 it will change the way the Bank of Canada (BoC) calculates the stress-test rate that lenders use to qualify all insured mortgage applications.In today’s post I will explain what changed and offer five key observations relating to it.

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Original Article Source Credits: move smartly, https://www.movesmartly.com/

Article Written By David Larock

Original Article Posted on : February 25, 2020

Link to Original Article: https://www.movesmartly.com/articles/how-last-weeks-mortgage-stress-test-change-will-impact-borrowers