February 18, 2020 – Minister Morneau Announces Changes to the Benchmark Rate for Qualifying Insured Mortgages

by | Feb 18, 2020 | Industry Updates

Lenders use a mortgage ‘stress-test’ to ensure that homeowners will continue to be able to afford their homes should interest rates rise, in the event of a job loss, or some unforeseen event taking place (such as a pandemic). The formula used is based upon the benchmark rate set by the government of Canada. Minister Morneau announced the new benchmark rate will be the average 5-year fixed term mortgage rate posted by the largest Canadian banks plus 2%.

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