If you need assistance, please call 778-230-8555

Stress Test Revision - Vancouver Real Estate

Saturday, December 31, 2022   /   by Jay Coupar

Stress Test Revision - Vancouver Real Estate

Mortgage Stress Test Revision

I am beginning to hear whisperings from some of my mortgage brokers about a potential revision to the B20 mortgage stress test.
As of 2018, buyers have been stress-tested at either the contract rate plus 2%, or the 5 year bank of canada posted rate - whichever is higher. This stress test was designed to protect both consumers and lenders from over-leveraging in the real estate market at a time when interest rates were at record lows and expected to rise. Now, however, we are near the end of the interest rate tightening cycle. First time buyers are qualifying at close to 8% interest rates - a very difficult hurdle. This is forcing people into the rental market, which is why we're seeing newer concrete one bedrooms condos in Yaletown, False Creek, and Mount Pleasant now pushing $2900/month.
Due to this problem, many within the industry are calling for a reduction in the qualifying rate. In addition, there are rumblings of stretching CMHC insured mortgages out to 40 year amortizations for first time buyers - reducing monthly payments substantially.


For more on what this information means for you, feel free to reach out at any time.


Website: www.jaycoupar.com/contact
Book A Call -
http://calendly.com/vancouverrealestate
Contact Directly: 778-986-9090
Andrew Do - ReMax Crest Realty
1428 West 7th Ave
Vancouver, BC V6H1C1
778-230-8555

MIMLS

The data relating to real estate on this website comes in part from the mls reciprocity program of the Real Estate Board of Greater Vancouver. Real estate listings held by participating real estate firms are marked with the mls reciprocity logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by the Real Estate Board of Greater Vancouver which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of the Real Estate Board of Greater Vancouver.

This site powered by CINC: www.cincpro.com