As of May 1, 2018, pre-approvals performed prior to January 1, 2018, have expired. This means the first wave of buyers facing OSFI’s groundbreaking mortgage regulations are being put to the test. The regulations, also known as B-20, require all borrowers to pass a stress test at an interest rate 2% higher than the qualifying rate.

The impact of the mortgage stress test will become more apparent moving forward, particularly if borrowing rates continue to rise. As of today, a homebuyer hoping to purchase the typical home in Greater Vancouver (as per the MLS benchmark price of $1.084M) would require a minimum down payment of $216,800 and a verified income of approximately $160,000, assuming a 5-year mortgage qualification rate of 5.14%.

Despite this, there are still plenty of alternative options available to Canadian homeowners. Don’t give up, we can still help with getting your mortgage approved.