The Bank of Canada has reduced the qualifying interest rate, AGAIN.
This qualifying rate applies to anyone who is seeking mortgage financing and is taking a term of less than 5 years.
The qualifying rate as of today has changed to 5.24% for terms less than 5 years. This still seems somewhat high, as the short term mortgage rates can readily be found for under 3%, however the intention of the Bank of Canada to encourage longer terms and avoid purchasing beyond your means is good.
For consumers, this means that more than ever they will be encouraged or forced to take 5 year term mortgages.
Robert W May is a Real Estate Broker in Lethbridge Alberta, having now been in the industry for over 23 years. . He was also a licensed Lethbridge mortgage broker and financing expert with Canada First Mortgage of Calgary Alberta for the past 10 years. He is an industry leader always willing to help train and educate others in how to improve their business models for financial and personal benefit.