Mortgage NewsCanada's New Mortgage Rules: This Is How Much You Can Afford
The new mortgage rules expand “stress tests” for borrowers to include five-year mortgages, the most common kind of mortgage in Canada. Though mortgages are being offered at around 2.5 per cent today, the stress test requires borrowers to qualify at the Bank of Canada’s posted rate — currently 4.64 per cent. For the full story click here.
Canada’s mortgage brokers find ways around new lending rules
As a way around them, brokers are planning to direct more borrowers to the so-called shadow lending market where private investors, frustrated by low interest rates on savings accounts, are eager to lend at rates that can enter the double digits. To bypass that test, buyers can make a 20 per cent down payment that qualifies them to take out an uninsured mortgage. Brokers said many buyers will turn to unregulated private loans to enable them to make that payment. For the full story click here.