Ottawa, February 18, 2020 - The federal government is changing the stress test rate for insured mortgages starting April 6. These are high-ratio mortgages where buyers are making less than a 20% down payment.
The new minimum qualifying rate will be the greater of the borrower’s contract rate or the weekly median five-year fixed insured mortgage rate from mortgage insurance applications, plus 2%. (Insured mortgages are those in which the borrower has less than a 20% down payment. They’ve been subject to the stress test since 2016 .)