Wondering how the rate increases (and subsequent stress test increase) would impact your ability to qualify for a mortgage? Suppose your household income is $120,000, you have good credit and you want to buy a condo in a major urban centre. Let’s say the property taxes are $2,400 and the condo maintenance/strata fees are $360 [...]
You have heard the term, maybe on the radio, in a newspaper or in the news. Stress Test. But what is it exactly? A mortgage stress test is a way of determining exactly how much you can afford (and under what circumstances). If your income was reduced or you lost your job, could you still [...]
Many people I speak with have no idea what the stress test, how it affects them and what it does to their budget when house hunting. So, I decided to post this to ensure that people had the opportunity to understand it in layman terms. The stress test came into effect in 2018 for all [...]
The home-purchasing power of ‘peak millennials’ aged 25-31 has diminished by around $40,103 (16.5%) since the introduction of the OSFI stress test at the start of 2018. A report from Royal Le Page calculates that nationwide, a peak millennial with a median salary of $38,148 has a maximum homebuying budget of $203,246. This includes a [...]
