The new stress test level represents a relatively modest increase from the previous rules, with the hiked rate reducing buying power by around 4% for most Canadians. Still, one BC-based broker told Mortgage Broker News that the announcement of a higher qualifying rate may have had something of a symbolic effect on the market.
“You would have to go through the metrics with every single client in your database and say, ‘It’s dropped your maximum purchase price from $700,000 to $675,000,’” he said.