Qualifying rate starting as of Jan 01, 2018 will be either contract rate + 2% OR 5-year benchmark rate set by the Bank of Canada.

Objective: To slow down the housing market and ensure long-term stability, according to the Government.

Implication: Clients with exactly the same income before will be qualified for less starting next year. Hence, property price is expected to be forced (ideally) to adjust downward.

What does that mean:

Local clients with good household income to qualify will be impacted the most such as those FTHB. Even for non-residents or self-employed business owners under Stated Income Program will have tougher time to obtain higher limit due to the increasing qualifying rates here. Only those who are not using income to qualify (i.e. equity program such as High Net Worth clients and Newcomers) will be impacted less. Those who are putting down less than 20% (high ratio / CMHC insured clients) are already being qualified at prescribed rate now. So there is no further impact to them.


For more information please contact Kevin Young at 604-723-5558

Thank you very much and have a great Day.