Are you stressed about the new mortgage stress test for 2021? Let's look at it from 2 perspectives:

1/ home buyers
2/ real estate investors

What's mortgage stress test? Homebuyers and real estate investors are required to qualify based on mortgage contract rate + 2% or 4.79% whichever one is higher.

As of June 1, 2021 homebuyer and real estate investors have to qualify based on mortgage contract rate + 2% or 5.25% whichever one is higher. This drops the purchase power by approximately 5%. Note this applies to refinancing homes, investment properties and home buyers with less than 20% downpayment as well.

See the video below for more on impact of mortgage stress test on homebuyers and real estate investors.