Bank of Canada Decreases Mortgage Qualifying Rate

The bank of Canada has decreased the their 5 year qualifying rate to 5.79%. This is the rate that “A” mortgage lenders have to use in their calculations when qualifying for variable rate mortgages or fixed rate mortgages where there is less than 20% equity in the home.

This change is often a reflection of the economy and bond markets. This will result in it being slightly easier to obtain a variable rate mortgage or shorter term fixed rate mortgage. The rate is also largely followed by the chartered banks posted mortgage rates.