Stress Test Rate to Drop

  5/16/2020 |   SHARE
Posted in Canadian Economy and Housing Market by Sam Cuda & Nancy Cuda | Back to Main Blog Page

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Thanks to a reduction in some Big-Bank posted rates in recent days, Canada’s mortgage stress test rate will fall as early as next week.

Both RBC and BMO cut a number of their posted mortgage rates this week, which should cause the mortgage stress test to fall from 5.04% to 4.99%, according to

“It’ll mark the first time since January 2018 (when OSFI’s stress test began) that this benchmark rate has been under 5%,” the site noted. “And, if one more bank matches BMO’s and RBC’s 4.94%, it could drop another 5 basis points.”

Granted, the rate change will be negligible for most buyers trying to qualify for a mortgage. RateSpy calculated that a mortgage stress test of 4.99% would allow a household earning $100,000, with 5% down and no other debt obligations, to qualify for a mortgage about $2,000 more compared to today.

Home Buyers, Mortgage Consumers, Stress Test

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