On April 8th, 2021, the Office of the Superintendent of Financial Institutions (OSFI) proposed a tougher minimum qualifying rate for uninsured mortgages.
As proposed, it will be the higher of these: the mortgage contract rate plus 2%, OR a 5.25% floor rate.
This is 0.46%-pts higher than the current stress test qualifying rate of 4.79%.
On June 1st, 2021 (the proposed start date) should nothing change, it would be slightly harder to get approved for a specific type of mortgage. When we say slightly, the impact on purchasing power is roughly 4-5%.