Mortgage stress tests have so far only been required for borrowers who take on variable or fixed interest rates with terms less than five years. But as of Oct. 17, any borrower with an insured mortgage will have to qualify at the 5-year Bank of Canada fixed posted rate — currently 4.64 per cent.
Starting Nov. 30, mortgage insurance criteria for low loan-to-value ratio mortgages (80 per cent or less of the home’s value) will be as stringent as that for high loan-to-value insured mortgages (loans representing 80 per cent or more of the home’s value).
However, homeowners with an existing mortgage or renewing their mortgage will not be affected.
To address the speculation in Vancouver and Toronto real estate partly fueled by overseas money, the government also announced that a capital gains tax exemption on the sale of a principal residence will now only apply to those who live in Canada the year the home is purchased.
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| Adnan Hashmi |
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