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The Office of the Superintendent of Financial Institutions said Thursday the minimum qualifying rate — a buffer that ensures a borrower will still be able to afford the mortgage if interest rates rise — would remain the greater of either the mortgage contract rate plus two per cent, or 5.25 per cent.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc.
“In times of economic uncertainty with increasing vulnerabilities, the has and continues to be a key tool supporting sound mortgage underwriting,” said OSFI assistant superintendent Tolga Yalkin in a press release accompanying the details.Article content OSFI added that a sound margin of safety was in place to ensure borrowers could be able to keep up with mortgage payments in case of negative financial shocks like job loss or diminished income, higher mortgage interest expenses and higher housing expenses.