The Bank of Canada recently announced that it has lowered the mortgage stress test qualifying rate for the first time in 3 years, from 5.34% down to 5.19%.
This means that you can now qualify for your mortgage using the new lower qualifying rate, which, in turn, allows you to borrow a larger mortgage. While this move might have only a small effect, it’s a positive change for those wanting to buy their first or next home.
With the U.S. economy showing signs of a slowdown and with what seems like never-ending trade wars appearing to derail recent economic growth, it was no surprise to see the U.S. Federal Reserve lower its benchmark rate.
In the past, when the US had lowered their rate, Canada followed suit. That might not be the case this time around. After a slow start to the year, the Canadian economy is gaining steam. Job growth is solid, and real estate prices and activity are showing stronger gains.
Canada’s benchmark rate is at 1.75%, and many economists predict that this rate will remain unchanged. That could be good news for Canadians. In addition, with the U.S. cutting its rates, it’s now unlikely that Canada will be raising its benchmark rate anytime soon. Plus, the chance of it even going down has also increased.
There’s lots of good news out there if you’re thinking mortgages.
The fall market is nearly here, and if you’ve been considering buying a home or if your mortgage is coming up for renewal soon, now’s the time to reach out. Our mortgage brokers can access many lenders, who are eager for your mortgage and are offering exceptional rates and terms now.
Contact us today to get your rate locked in!