Bank of Canada Announces - Mortgage Qualifying Rate Increases to 4.74%
February 5, 2019 | Posted by: Mortgage InGenuity Inc.
Bank of Canada Announces Today - Mortgage Qualifying Rate increase 10bps to 4.74%.
In an effort to slow down Home Purchases and to curve household debt, the BOC increases the mortgage qualifying rate to 4.74%. That means in order to qualify for a 1 - 4 Year Mortgage and all Variable Rate Mortgages, it just got a little more difficult.
A red Hot Housing Market and House debts continue to plague the Government's attempt to control housing prices and inflated equity. Many assume we are in a bubble and major banks announced eariler this year that we may be in for a correction in major markets. This has triggered many alarm bells for mortgage rules to be tightened again and the approval process to be more difficult.
It is very important for consumers to get the best advice when applying for mortgages. Working with a Mortgage Broker/Agent is crucial for all consumers to get that advise and the many options available to them.