With the recent drop in bond prices and banks lowering their posted rates on mortgages as of Monday May 30th the Bank of Canada Qualifying Rate will decrease to 5.59%.
In accordance with the new CMHC mortgage changes, at 12:01 AM EST May 30th, the benchmark qualifying rate for insured high-ratio mortgages will be 5.59.%.
Clients will now have to qualify based on the 5.59% interest rate if they want to choose a variable or a 1- to 4-year fixed term if you’re putting down less than 20%.
CMHC defines the benchmark rate as the Chartered Bank — Conventional Mortgage 5-year rate that is the most recent interest rate published by the Bank of Canada in the series V121764 as of 12:01 AM (Eastern Time) each Monday.
If you have any questions, please feel free to contact Scott Dawson by any of the methods below:
Phone: (778) 668-9320