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Increase to Bank of Canada's Qualifying Rate from 4.84% to 4.89%

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Who: The Bank of Canada 

What: Qualifying Rate - This rate is a weighted average of the big 5 bank's 5 year posted rates. It is used to qualify all insured mortgages as well as variable rate mortgages or those with terms shorter than 5 years. It is not the actual interest rate that the client will receive, simply a rate used for qualifying.

Why: It is essentially a "stress test" to ensure borrowers can afford an increase in payments, should rates go up.

When: Effective immediately. It is important to note that some lenders may honor the old qualifying rate for pre-approvals however most will require borrowers to qualify at the new, higher rate.

If you are pre-approved and currently shopping for a new home, it is important that you consult with your Mortgage Broker to ensure their maximum mortgage amount has not changed.

For any questions, please feel free to contact me.

Have a great day!

www.christinebuemann.ca 
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Location: 1338 Central St E, Prince George, BC V2M 3C1, Canada

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