Bank of Canada Qualifying Interest Rate Change - AGAIN

The Bank of Canada has reduced the qualifying interest rate, AGAIN. 

This qualifying rate applies to anyone who is seeking mortgage financing and is taking a term of less than 5 years. 

The qualifying rate as of today has changed to 5.24% for terms less than 5 years.  This still seems somewhat high, as the short term mortgage rates can readily be found for under 3%, however the intention of the Bank of Canada to encourage longer terms and avoid purchasing beyond your means is good.

For consumers, this means that more than ever they will be encouraged or forced to take 5 year term mortgages.