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Uninsured stress rate stays
The Canadian Press – Dec 12, 2023 / 1:33 pm | Story: 462170
Photo: The Canadian Press
Canada’s banking regulator says it has left the stress test rate for uninsured mortgages unchanged. The Office of the Superintendent of Financial Institutions says the minimum qualifying rate for uninsured residential mortgages will remain the greater of 5.25 per cent or the mortgage contract rate plus two per cent. The Canadian flag blows in the wind in the heart of the financial district in Toronto on June 27, 2018.THE CANADIAN PRESS/Tijana Martin
Canada’s banking regulator says it has left the stress test rate for uninsured mortgages unchanged.
The Office of the Superintendent of Financial Institutions says the minimum qualifying rate for uninsured residential mortgages will remain the greater of 5.25 per cent, or the mortgage contract rate plus two per cent.
Uninsured mortgages are generally residential mortgages with a down payment of 20 per cent or more.
Superintendent Peter Routledge says holding the minimum rate helps ensure lenders and borrowers manage risk associated with residential mortgages.
He says the stress test has produced a more resilient residential mortgage financing system.
OSFI sets the stress test for uninsured mortgages, while the finance department sets the rate for insured mortgages.
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