Canada's mortgage stress test remains unchanged

The Canadian Banking Regulatory Commission has announced that there will be no change in the stress test rate for uninsured mortgage loans.

Also, OSFI's Office of the Director of Financial Institutions has announced that the minimum allowable rate for uninsured home mortgage loans will be the higher of 5.25 percent or the mortgage loan contract rate plus two percent. Uninsured mortgage loans typically include home equity loans with a down payment of 20 percent or more.

Following OSFI's announcement on Tuesday, Finance Minister Chrystia Freeland also announced and confirmed that the minimum allowable rate for an insured mortgage loan will also remain unchanged.

"Our goal is to protect and support Canadians to ensure they have the support they need to pay off their mortgages," Freeland said. He added: "We will continue to monitor the housing market and are ready to make changes in the minimum allowed rate if necessary."

The Canadian Banking Regulatory Commission has announced that there will be no change in the stress test rate for uninsured mortgage loans.

Also, OSFI's Office of the Director of Financial Institutions has announced that the minimum allowable rate for uninsured home mortgage loans will be the higher of 5.25 percent or the mortgage loan contract rate plus two percent. Uninsured mortgage loans typically include home equity loans with a down payment of 20 percent or more.

Following OSFI's announcement on Tuesday, Finance Minister Chrystia Freeland also announced and confirmed that the minimum allowable rate for an insured mortgage loan will also remain unchanged.

"Our goal is to protect and support Canadians to ensure they have the support they need to pay off their mortgages," Freeland said. He added: "We will continue to monitor the housing market and are ready to make changes in the minimum allowed rate if necessary."

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