Variable-rate mortgages growing in popularity despite BoC rate hikes

Vancouver, Toronto, Calgary

2022/09/13

Experts say the mortgage stress test is a possible reason for the increased interest in variable mortgages since the qualifying rate is lower. The test requires a homebuyer to show they can afford payments at a rate two percentage points higher than the negotiated interest rate. Or can manage the BoC’s current qualifying rate, whichever is higher.