The Bank of Canada uses the posted five-year fixed mortgage rates at Canada’s biggest banks to calculate the rate used in stress tests
Rate will change from 4.99% to 5.14%
TD, Royal Bank confirm hikes
The increase in renewals comes as mortgage rates have been rising
Mortgage brokers increasingly direct home buyers toward alternative lenders
The hikes follow a move by the Bank of Canada to boost its key short-term rate
RBC, TD and CIBC raise rates
Interest rate shocks for some households could be “significant,” report warns
The new rules will extend stress-testing requirements for homebuyers to uninsured mortgages
Stress tests examine impact of several extreme scenarios on the mortgage lender