New Mortgage Rules

Effective June 1, 2021.

The government announced yesterday that on June 1, they will be mandating that insured mortgages qualify at a higher stress rate of 5.25% (currently 4.79% today). This means that no matter what rate the client is actually paying on their mortgage, mortgage lenders need to qualify them as if their payments were at a rate of 4.79% today (and going up to 5.25% June 1).

Unless borrowers are “at their max”, it will likely not affect them. However, I would encourage all current house-shoppers to get in touch with their pre-approval bank or mortgage specialist to make sure things are still in line. And, if it was recommended that they put a financing condition due to being at their max already, it’s very important that they check that as well.

Thank you Lisa Kanski for the update. If you need more information or have questions about this, please contact Lisa at Castle Mortgage.