Federal Mortgage rules take effect from today
The new rules involve a stress test for all insured mortgage applications to safeguard the borrower can still service their loan in the likely event of a rise in interest rates or a change in their personal financial situation.
Stress tests were not a mandate till now for fixed-rate mortgages longer than five years.
However, the federal government is making changes to stabilize the country’s housing markets, with a particular focus on cities like Vancouver and Toronto, where housing prices have scaled very high.
(Reporting by Debarati Mukherjee)
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