Minimum Qualifying Rate for Both Mortgage Stress Tests Left at 5.25%

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As part of its annual review of the stress test for uninsured mortgages, the Office of the Superintendent of Financial Institutions today confirmed the minimum qualifying rate will remain at 5.25%.

That means borrowers making a down payment of 20% or more will need to prove they can afford payments based on their contract rate plus 2% or 5.25%, whichever is higher. Currently, about 90% of mortgage borrowers are being qualified at the 5.25% minimum qualifying rate (MQR) rate as opposed to their contract rate plus 2%, OSFI said.

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Original Article Source Credits: Canadian mortgage Trends,

Article Written By: Steve Huebl

Original Article Posted on: NA

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