From a recent CBC article.
The bar at which the finances of Canadian mortgage borrowers gets tested has been lowered again, making it easier for would-be homebuyers to reach. In 2017, a stress test was designed during a hot real estate market, to ensure borrowers would be able to pay back their loans if rates rose suddenly. However, the pandemic and historically low-interest rates that are showing no hint at rising have resulted in changes that are making it a little easier for borrowers.
On August 12, the Bank of Canada lowered its five-year conventional mortgage rate from 4.94% to 4.79% — the second time it’s reduced the qualifying rate in the last three months. Read more here.
In a recent article from Mortgage Broker News, they stated that this year, mortgage rates will most likely remain low and qualification will be easier, real estate information portal Zoocasa predicted.
In a recent article from Mortgage Broker News, a study from KPMG showed that only 54% of Millennials expect to be able to afford a home. Whether you are a hopeful Millennial, or a Baby Boomer who has been a long-time homeowner, check out this great read.