What is Bank of Canada Qualifying Rate?
The Bank of Canada Qualifying Rate, also known as the BOC rate, is the minimum interest rate that Canadian banks and mortgage lenders use to determine whether a borrower qualifies for a mortgage. The BOC rate is used by lenders to assess a borrower’s ability to make their mortgage payments. If the BOC rate is increased, it will usually result in an increase in the minimum interest rate that banks and mortgage lenders charge on their mortgages.
Bank of Canada New Qualifying Rate
If you have recently been pre approved for a mortgage you should re visit the approval process. The bank of Canada has increased the benchmark qualifying rate to 4.84%. What does this mean? If you have a mortgage that is considered High Ratio and is insured with CMHC, then you must now qualify using the 4.84% which increased from 4.64%.