The Bank of Canada decreased their Qualifying Rate to 4.99% which is great news for anyone looking for a term other than a 5-10 year fixed. You may wonder what the Qualifying Rate is or how it could affect your potential mortgage. As of April 19, 2010 all insured mortgages (less than 20% down) with a term of less than 5 years or a variable rate must be qualified at the current Qualifying Rate as opposed to the actual interest rate. Here is an example*: Purchase price $300,000 Down payment $ 15,000 CMHC Premium $ 7,837.50 Total Mortgage $292,837.50 For this mortgage with a 5 year fixed rate term, you would need to earn just over $60,000 a year in income to qualify**. For this same mortgage at a variable rate or term less than 5 years, you would need to earn at least $70,000**. The Qualifying Rate was at 5.34% as a few weeks ago so this recent drop will definitely he...