Looking for a Mississauga mortgage? We’ve got you covered with everything you need to know about the market and the latest rate trends.
This past week Canada’s banking regulator called OFSI confirmed that it would leave the qualifying rate for the mortgage stress test unchanged. That means the qualifying rate remains at the higher of 5.25% or the rate you receive on your mortgage plus 2%. So, if you obtain a rate of 5.5% which is about today’s 5-year fixed rate, then you must qualify for the mortgage at the rate of 7.5%.
Although that might seem like a tough task to qualify for 2% higher than your rate, let’s remember that qualifying at higher rates is probably what has saved most people from defaulting on their current mortgages in this higher rate environment.
If you are looking to refinance your exiting Mississauga mortgage or buy a new property and you cannot qualify based on these very high qualifying rates at the bank, remember there are alternative lenders that we at Lotus Loans & Mortgages have access to where qualification is less stringent although rates are slightly higher. If you or someone you know needs mortgage money but cannot bank qualify due to the high-stress test rates, reach out to us so we may help to obtain the money that is needed.