The mortgage stress test has been in effect for over a year now and is having a profound effect on consumers applying for mortgages.

For consumers with existing mortgages that come up for renewal it means having to qualify under much more stringent guidelines than when they got the mortgage. The unintended impact of the stress test has been that many are forced to renew their mortgage with their current lender as they no longer qualify under the new rules. This means they may not get the best rate available to them.

For others who are looking to refinance their mortgage and no longer qualify with the new rules they are being forced to borrow under more expensive private rates. The need for the money is still there and with private lenders not being subject to the stress test it is the avenue that some are forced to go.

For purchasers, the stress test is reducing their ability to borrow by approximately 20% or more. It will take a significant drop in the market in order to be able to give purchasers the ability to buy what they could have back in 2017 especially given incomes have not increased along with the overall general price of real estate.

If you need more information regarding mortgages or if you need any advice on your personal situation please contact our office at 604-556-3893 or email at

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