Posts tagged First-Time Home Buyers
The Impact of Mortgage Stress Tests on Young Buyers

Recent data indicates that the youngest buyers in the country are affected most by the government’s mortgage stress test. According to recent industry insight reports from TransUnion, mortgage originations were down nearly 8.9% in Q2. As compared to last year, originations from buyers between ages 18 and 25 are down 13.4%. This is the fourth consecutive quarter that balances and mortgage originations were down on an annualized basis.

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Bank of Canada lowers rate to 5.19% used in mortgage stress test, making it easier to qualify!

The Bank of Canada has lowered the rate used by mortgage stress tests which is used to determine whether would-be homeowners can qualify. This marks the first drop in three years. The central bank’s five-year benchmark qualifying rate is now 5.19 per cent, down from 5.34 per cent. This is the first decrease in the five – year fixed mortgage rates since September 2016 when it dropped to 4.64% from 4.74% and increased steadily since.

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