Canada’s Banking Regulator Leaves Mortgage Stress Test Unchanged
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Canada’s banking regulator maintained the qualifying test it imposes on mortgage borrowers, keeping pressure on the nation’s prospective home buyers.
Borrowers who are applying for uninsured mortgages must go through a so-called “stress test”, officially known as the minimum qualifying rate, to ensure they can handle a future increase in rates. The MQR will remain the greater of 5.25% or the bank’s contract rate plus 2 percentage points, the Office of the Superintendent of Financial Institutions said in a statement Tuesday.
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