On June 22, 2022 chartered banks 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 (OSFI) to obtain an insured mortgage and pass a stress test.

This stress test adds an additional two per cent to the five-year posted rate unless the contract rate is higher.

Currently the five-year posted rate is 6.04 per cent.

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* Mortgage rate Total price (inc PTT) Down payment Loan amount Monthly principal and interest Income required
Before June 22, 2022 $766,300 7.39% $779,626 $114,945 $651,355 $4,720.10 $201,576
After June 22, 2022 $766,300 8.04% $779,626 $114,945 $651,355 $4,987.87 $212,286

*June 2022
benchmark price for a condominium in Greater Vancouver