Mortgage Qualifier

You will need to pass a “stress test” in order to qualify for a mortgage loan at a bank. This requires ample proof that you can afford payments at a qualifying interest rate which is typically higher than the actual rate in your mortgage contract.

Based upon whether or not you need mortgage loan insurance, the bank must use the higher interest rate of either:

• The Bank of Canada’s conventional five-year mortgage rate
• The interest rate you negotiate with your lender
• The interest rate you negotiate with your lender plus 2%