Insured Mortgages Requirements Get Aligned With Uninsured Amid Canada Housing Boom

The Deputy Prime Minister and Minister of Finance, the Honourable Chrystia Freeland announced that the federal government will align with OSFI by establishing a new minimum qualifying rate for insured mortgages (less than 20% downpayment), subject to review and periodic adjustment, which will be the greater of the borrower’s mortgage contract rate plus 2 per cent, or 5.25 per cent. This will apply to insured mortgages approved on June 1, 2021, or later.