“At a minimum, the qualifying rate for all uninsured mortgages should be the greater of the contractual mortgage rate plus 2% or the five-year benchmark rate published by the Bank of Canada,” states OSFI’s Residential Mortgage Underwriting Practices and Procedures guideline.
Whichever rate is higher is the one that borrowers are tested at. As a result, at least for the time being, it will be slightly easier for those with uninsured mortgages to qualify. This also applies to those who want to switch lenders.
According to calculations by RateSpy.com, assuming no other debts and a 30-year amortization period, someone earning $50,000 a year and making a 20% down payment would be able to afford a home that is roughly $4,000 more expensive. Someone earning $100,000 a year and making the same down payment would be able to afford a home that is roughly $8,300 more expensive.