Bank of Canada Qualifying Rate Changes
Yesterday’s announcement indicated the Bank of Canada Qualifying rate decreased from 5.34% to 5.19%. This is the first decrease that we’ve seen since September 2016. What does the decrease mean?
The change would increase a client’s buying power…marginally.
“For a borrower buying a home with 5% down, today’s drop in the stress-test rate means:
- Someone making $50,000 a year can afford $2,800 (1.3%) more home
- Someone making $100,000 a year can afford $5,900 (1.3%) more home
- (Assumes no other debts and a 25-year amortization. Figures are rounded and approximate.)
- For a borrower buying a home with 20% down, today’s drop in the stress-test rate means:
- Someone making $50,000 a year can afford $4,000 (1.4%) more home
- Someone making $100,000 a year can afford $8,300 (1.4%) more home
(Assumes no other debts and a 30-year amortization. Figures are rounded and approximate.)
dcarlson@jencormortgage.com
403-245-3636 x 2027