AGENT LICENSE ID
M20001823
BROKERAGE LICENSE ID
10349
Julian Lau
Mortgage Agent
Office:
Phone:
Email:
Address:
7676 Woodbine Ave, Suite 300, Markham, Ontario
What Does Tighter Stress Test Mean?
4/12/2021
There have been talks that the federal government will increase stress test rate in June. It might go up to 5.25% from currently 4.79%.
What does that mean in terms of qualification? Actually it does not have a whole lot of impact. To qualify for $1 million of borrowing from a traditional lender, you will need about $10,000 more of annual income.
However, it might mean the beginning of more federal government intervention of this red hot real estate market. Will the government be able to cool it down without crashing it? That is probably the biggest question.