These new guidelines include a stress test for uninsured mortgages or mortgages with more than a 20% down payment or 20% in existing equity. This new stress test means that borrowers will be qualified at the greater of their contract rate + 2% or the five year benchmark rate published by the Bank of Canada, which is currently 4.89%.
To give you some numbers, per $100,000 in mortgages. Based on an interest rate of 3.29% with a 25yr amortization.
Mortgage Payment – $488.25 (3.29% with 25yr am)
Benchmark Rate Payment – $575.36 (4.89% with 25yr am)
Stress Test Payment – $598.22 (5.29% with a 25yr am)