The Office of the Superintendent of Financial Institutions (OSFI) has confirmed effective December 17th 2021 that the minimum qualifying rate for uninsured mortgages will remain at 5.25%.
That means borrowers making a down payment of 20% or more will need to prove they can afford payments based on their contract rate plus 2% or 5.25%, whichever is higher. Currently, about 90% of mortgage borrowers are being qualified at the 5.25% minimum qualifying rate (MQR) rate as opposed to their contract rate plus 2%, OSFI said.
The Department of Finance followed suit by leaving the MQR unchanged for insured mortgages, or those putting down less than 20%.
OSFI reviews the MQR each December and said it will make further adjustments “if conditions warrant.”