When it looks like rain, do you pack an umbrella? We all plan ahead, just in case things don’t work out as anticipated. Why should your mortgage, probably the most significant financial move of your life, be any different? A mortgage stress test is an analysis of your planned mortgage rate, possible increases in interest rates, and refinancing possibilities. These factors are compared to your anticipated income, allowing you to look ahead and see what you will able to afford. If you’re ready to get started with finding the right mortgage for you, a mortgage stress test is the
What is a mortgage stress test?
How do you find out the minimum monthly payment you’ll need to afford to qualify?
When calculating a stress test, there are many factors to consider. Current and future employment, changes in income or expenses, and shifting families can all play into the final figure of what you’re able to afford. Not only will complying with this test qualify you for the right mortgage, it will provide you with security and peace of mind throughout the term of your mortgage contract.
If the mortgage stress test is sounding a bit… stressful, don’t worry. Canadians everywhere face difficulties when applying for a mortgage due to a lack of research and preparation. If you’re looking into how to calculate your own mortgage stress test, you’re well on your way to owning a home, with financial stability and a great rate to boot. If you have questions about your mortgage rate, the Bank of Canada’s qualifying rate, stress tests, or anything else in the world of becoming a homeowner, don’t hesitate to contact Milka Lukacevic and the TMK team at The Mortgage Centre today!