Worried about the new Mortage Rules in Victoria BC?
High prices of homes aren't the only thing keeping buyers in B.C from getting into the real estate market.
As of earlier this month, all buyers are required to pass a stress test before they get into a mortgage with a bank.
What is a Stress Test?
The stress test is there for the "What If" scenario. Potential buyers will be tested for a rate of 2% more than what is offered by the lender or a 4.99% benchmark rate set by the Bank of Canada.
Those who fail the test will need to look for a cheaper home.
So if you were approved for a home worth $700,00, this year it might change to a home for $560,000. With inventory at an all-time low for that price range, people are going to have to wait.
The test is there due to the federal government concerns about increasing debt levels.
This will only affect those seeking a new mortgage. Those who are looking to renew are in the clear.
For more information on the new mortgage rule here in Victoria BC, Contact your mortgage broker or send us an email at firstname.lastname@example.org and we can get you in touch with an expert.