If you are a current variable mortgage holder you are possibly experiencing a hike in payments.
This is because of the BoC’s (Bank of Canada) rate hikes to fight inflation. For new mortgages that are uninsured, the stress test will be excess of 7%, but those whom have a 20% down payment will average about 5.20% according to canadianmortgagetrends.com.
You start to think if the stress test is even relevant due to the rising rates and BoC stating that they will continue to rise till inflation settles close to 2%. As of right now the office of Superintendent of Financial Institutions is considering to remove the stress test for existing mortgage holders who want to switch to a different lender, but nothing is certain as of right now.