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REAL ESTATE: Less Stress over the “Stress Test”

Posted by MAC Suites on February 19, 2020
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There has been a lot of talk about the “Stress Test” that took effect a few years ago. Currently, the OSFI (Office of the Superintendent of Financial Institutions) requires that all homebuyers requesting a new mortgage – or those switching lenders – prove that they can afford 2% more than the rate their bank is offering, or 2% more than the Bank of Canada 5-year benchmark of 5.19%, whichever is higher.

Starting April 6, 2020, borrowers with insured loans will have to qualify at 2% above the rate their bank is offering, or 2% above a new weekly median 5-year insured mortgage rate that will be based on mortgage insurance applications. Remember, this is for insured mortgages, though there is some expectation that the OSFI will also adopt the same rules regarding uninsured mortgages. Regardless, this does provide just a bit more room in the budget for a home.

Given this news, now is the best time to get into the market, especially considering TREB (Toronto Real Estate Board) is anticipating a 10% value increase in properties this year. Ten percent! Toronto real estate is very strong. If you are looking to buy your first home or invest in Toronto real estate, upgrading your home, or planning a relocation to Toronto, remember…your primary residence is not something you flip. Don’t wait to get into the market. Start now, start small, and stay patient. And please don’t stress over the stress test.


Interested in buying real estate in Toronto & the GTA, or perhaps investing in Toronto real estate? First time home buyer? Moving to Toronto? Are you part of a Toronto relocation with your employer? Our real estate sister company – MAC Real Estate Services Inc., Brokerage – can help you with all steps of the process, from finding a new home, temporary accommodations in the meantime, destination services, settling in services, move management, and so much more. So many steps of the move can be handled in advance, so when you arrive we can get you settled much faster. When moving to Toronto, we can help with all aspects of the relocation.

We’d love to hear from you, so call us today to book your complimentary private consultation.


Once you are all settled into your new home, let us help you with a relaxing Caribbean get-away with a private luxury villa rental in St Martin/ St Maarten, St Barth’s or Anguilla. Caribbean villa rentals are a cost-effective way to travel. Ask us how!

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