How This New Mortgage Trend Could Affect You

With an endeavor to ensure borrowers can afford to pay their mortgages if interest rates were to suddenly rise, the Office of the Superintendent of Financial Institutions (OSFI) has increased the stress test rate in Canada to 5.25%. The new rate came into effect on 1st June 2021. The change is estimated to cause an up to 4% reduction in the principal amount of the borrowers buying power. So depending on the borrower’s circumstances, it can significantly decrease the amount of mortgage they are potentially able to afford.

Besides, with real estate prices being at an all-time high, it can make it challenging for first-time homebuyers to enter the market. Therefore, it’s more crucial now than ever before to sit down with a mortgage broker and make a concrete plan of how to move forward.

Consequently, we work with clients to assess their current situation and to help them discover what creative methods they can use to buy a home even with the increased stress test. As a result, if you’re planning to climb onto the property ladder soon, contact our team today. 

With over thirty years of combined experience, Canadian Tailored Mortgage Solutions will help you with your mortgage needs as we maintain stellar relationships with lending institutions. In addition, we ensure that our services provide the best possible solutions to meet present and future financial goals.

Our services include pre-approvals, home equity loans, renewals, debt consolidation, first-time home buyers, private mortgages, and reverse mortgages. We also take care of investment properties, second mortgages, construction or commercial mortgages, and renovation loans for clients. We serve clients across Pickering, Oshawa, Bowmanville, Mississauga, Brampton, Markham, Stouffville, Oakville, Barrie, Durham Region, GTA, Ontario, and the surrounding areas.

If you have any questions about mortgages, please contact us by clicking here. To learn more about the other services we have to offer, please click here.