Bank of Canada Qualifying Rate Drops to All Time Low
Qualifying for a variable, or 1-4 year fixed rate mortgage has become easier this week. The qualifying rate has dropped to its lowest ever: 4.79%
This decrease gives borrowers who may have not previously qualfiied for a variable rate mortgage, or a term of less than 5 years, more flexability in choosing their mortgage type and term. High Ratio mortgages, as well as some conventional mortgages with variable rates or fixed terms under five years, require applicants to qualify at the posted, higher rate (most recently 4.99%) in order to ensure borrowers can afford their mortgage payments in the event that rates go up.
Posted by Alana Myers
on May 13, 2014