Bank of Canada will change the mortgage qualifying rate from 4.99% to 5.14%

Got this info from my RBC Mortgage specialist,  starting on Jan 22nd, 2018, Bank of Canada will change the mortgage qualifying rate from 4.99% to 5.14%.

So based on the current Stress Test, clients will be qualified as follows:

  • For regular conventional mortgage (no LOC attached), clients will be qualified by GREATER of (client contract rate + 2%) OR 5.14% (BoC Qualifying rate)
  • For Homeline Plan (mortgage + LOC), clients will be qualified by GREATER of client’s LOC rate (3.45% + 0.5%) + 2% = 5.95% OR 5.14% (BoC Qualifying rate) => SO 5.95% will be the rate to qualify clients if they wish to have LOC attached to their mortgage.
  • For Default insured mortgages (high ratio mortgage with CMHC or Genworth), clients will be qualified by GREATER of client contract rate OR 5.14% (BoC Qualifying rate).
  • For all RBC preferred builder’s applications, clients will be qualified at 5.14% (BoC Qualifying rate) + 0.4% = 5.54%.

I know, it’s getting tougher to qualify now. Just hope that if you are already pre-approved by the banks prior to the Stress Test can find a place soon!

For more details, feel free to call 604.723.5558 or email me at