Bank of Canada Qualifying Rate Now 5.54%

The Bank of Canada Qualifying Rate has decreased to 5.54% which is effective Monday July 11th, 2011.

In accordance with the new CMHC mortgage changes, at 12:01 AM EST Monday, the benchmark qualifying rate for insured high-ratio mortgages is 5.54%.

Clients will now have to qualify based on the 5.54% 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.