The new mortgage rules expand “stress tests” for borrowers to include five-year mortgages, the most common kind of mortgage in Canada. Though mortgages are being offered at around 2.5 per cent today, the stress test requires borrowers to qualify at the Bank of Canada’s posted rate — currently 4.64 per cent.
Some in the industry say one of the effects of the new rules could be higher mortgage rates to come.
Lets see how much house people will be able to get a mortgage for, at various income levels.
The maximum amounts range from $125,483 for a household with $25,000 in income and 5 per cent down, to $1.837 million for a household earning $300,000 annually, with 20 per cent down.