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My view on the new mortgage stress test changed after I saw the numbers
I used to think the federal stress test was just another government hassle for buyers. Then I ran the numbers for a friend in Edmonton last month. On a $450,000 mortgage at 4.5%, the test rate of 7.5% means you need about $95,000 income to qualify. Without the test, he could borrow $70,000 more and he would have been stretched thin. That extra cushion is what saved him from being house poor. Has anyone else reconsidered their stance on this rule after actually crunching the numbers?
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