Chartered banks recently raised their posted mortgage rates in response to higher bond yields.
A home buyer with less than a 20 per cent down payment is required by the federal Office of the Superintendent of Financial Institutions (OSFI) to obtain an insured mortgage and pass a stress test.
This stress test adds an additional two per cent to the five-year posted rate unless the contract rate is higher.
Currently the five-year posted rate is 6.04 per cent.
Here’s what this latest change means to the buyer of a benchmark price condominium in Greater Vancouver.
Impact of June 22, 2022 mortgage rate increase
benchmark price for a condominium in Greater Vancouver
- Mortgage rate shown is before and after the June 22 mortgage rate increase to 6.04% from 5.39%.
- Calculation based on 15% down payment amortized over 25 years.
- Property Transfer Tax Fact Sheet