What’s an Official Stress Free Mortgage?
It’s one we base on conversations not math equations.
Stress testing came into effect this January for all federally regulated lenders, like the big banks. It applies to anyone wanting to apply for a mortgage and is based on using a higher interest rate to qualify (or be approved). The higher rate is known as the “qualifying rate” and it could be:
- the Bank of Canada’s current five year benchmark rate; or
- the agreed upon mortgage contract rate plus two percentage points.
Since Westoba is provincially regulated, we aren’t required to stress test.* We talk about your financial goals instead of crunching numbers.
Why stress test mortgage applications?
People need to prove they can afford their potential mortgage base on the minimum “qualifying rate”. The idea is that this helps ensure people can handle any changes in interest rates or unplanned emergencies (like loss of employment).
How does Westoba handle mortgages?
We talk about your financial goals instead of just crunching numbers. We start with a conversation to learn more about you and your home owning goals, and go from there. As your financial fitness partners, we build a plan together that meets your specific needs.
Call 1-877-WESTOBA or make an appointment with a Mortgage Specialist and become an Official Stress Free homeowner with Westoba!
* Some conditions apply.