Is the stress test making it difficult for you to qualify for a mortgage? You are not alone! Since the introduction of the new stress tests in 2018, many Canadians have experienced difficulty securing a mortgage with traditional lenders. However, the stress test doesn’t need to stand in the way of your home purchase or refinance. At Clover Mortgage, we have great solutions for clients who are having difficulty passing the new stress tests!
Prior to 2018, only insured borrowers had to qualify for a mortgage using the model of a qualifying a mortgage at higher rates. Now, the new rules of the stress test requires ALL borrowers to prove they can afford to pay a mortgage at both the current rate and a higher rate. The increase implemented in the stress test is usually 2% above the common 5 year fixed rate. The current interest rate used by traditional lenders is 3.89% before the additional 2%. It is becoming increasingly difficult for clients to purchase in today’s expensive market because of the substantial increase in the financing needed to secure a mortgage. Borrowers are forced to turn to pricey alternative lenders, settle for cheaper homes or forgo purchasing a property all together.
Although alternative lenders do not use stress test rules when qualifying borrowers, many also offer much higher interest rates. This is precisely what sets us apart from other alternative lenders. At Clover Mortgage, clients with excellent credit who cannot pass the stress tests enforced by the major banks, can qualify for a mortgage at Clover with a discounted rate. By applying for a mortgage with us, you can avoid the 2% while securing a competitive interest rate as low as 4.25% for a 5 year fixed mortgage. Without having to qualify under the stringent rules of the stress test, our clients are able to secure a higher mortgage amount more easily than with traditional banks.
If you have excellent credit and are interested in locking in a lower mortgage rate without having to pass the stress test, then contact us today! Our experienced agents are determined to help you secure a mortgage by matching you with lenders offering low rates! Whether you are interested in refinancing your mortgage or purchasing a new home all together, we are here to help you find the best competitive rates in the current market. Start your home purchase journey with us and you won’t have to worry about the stress test anymore!