skip to Main Content

Bank of Canada lowers benchmark qualifying mortgage rate

By Joannah Connolly for Buisness Vancouver

For the first time in three years, the Bank of Canada has lowered its five-year qualifying mortgage rate, from 5.34 per cent to 5.19 per cent.

This provides some slight relief for home buyers and mortgage renewers who have to pass the mortgage stress test, by qualifying at the posted rate or their contract rate plus two per cent, whichever is higher.

With average five-year fixed mortgages now under three per cent most fixed-rate mortgage applicants were still having to qualify at the higher 5.34 per cent posted rate. This remains true of the new lower rate of 5.19 per cent, but it does make it easier for applicants to qualify for their mortgage.

Vancouver Real Estate News, Market Updates, Insider Tips, Stats, & Analysis

Sign up for insider real estate news & tips from our podcasting team.

Are you a realtor? Click here
Selling Your Home? Click here

  • Reload
  • Should be Empty:

The change was warmly welcomed by the mortgage industry. James Laird, co-founder of mortgage comparison service Ratehub Inc. and president of CanWise Financial, said, “The change in the Bank of Canada five-year benchmark rate now means that Canadians can qualify for more home today compared to earlier this year and 2018.This decrease alleviates some of the pressure on first-time homebuyers, who are the most financially strained Canadians entering the housing market.”

Continue reading the full story here >>
 

This Post Has 0 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

As Seen and Heard On

Media enquiries and press contact info: media@vancouverrealestatepodcast.com

© 2019 Matt Scalena PREC* & Adam Scalena PREC* , all rights reserved • Site MapBy Line49 Web Design, Vancouver BC

*Considering a real estate transaction? One of the first decisions you will need to make is whether you should work with a licensed real estate professional who will represent you. Take a moment to read this important consumer protection information from the Real Estate Council of BC. This form explains the special legal duties that real estate professionals owe to their clients. CLICK HERE and please call 778-847-2854 or 778-866-4574 immediately if you would like to discuss.

Back To Top