Since June 22, 2022 chartered have repeatedly raised their posted mortgage rates in response to higher bond yields.

A home buyer with less than a 20 per cent down payment is required by the federal Office of the Superintendent of Financial Institutions to obtain an insured mortgage and pass a stress test.

Currently the five-year mortgage contract rate is around 5.75 per cent with the qualifying rate at 7.75 per cent, based on the stress test. In June of last year, the rate was about one percentage point lower.

Here’s what this latest change means to the buyer of a benchmark price condominium in Greater Vancouver.

Impact of June 22, 2022 mortgage rate increase

  Benchmark price* Qualifying mortgage rate Down payment Loan amount** Monthly principal and interest Income required
Before June 22, 2022 $766,300 6.75% $153,260 $630,205 $4,317.22 $172,689
Now $770,200 7.75% $154,040 $633,412 $4,733.62 $189,345

*June 2022 benchmark price for an apartment in Greater Vancouver
October 2023 benchmark price for an apartment in Greater Vancouver

**Based on 20% downpayment. Loan amount includes mortgage insurance fee. Income required does not include taxes, heat and other costs.