Nearly half (47%) of all existing mortgages will need to be renewed this year according to a recent report by CIBC Capital Markets. A typical year the renewal rate is 25-35%.
This significant increase in renewals comes at the same time mortgages rates are increasing. Five year fixed rates are up approximately 0.70% from the same time last year.
Under the new tighter guidelines known as B20 that started earlier this year homeowners must now prove they can service the mortgage debt at a qualifying rate of the greater of the contractual mortgage rate plus 2% or the 5 year benchmark rate published by the Bank of Canada currently at 5.34%.
What does this all mean? Interest rates still remain incredibly low & your options when your existing mortgage is up for renewal is incredibly high. We highly recommend contacting us at 902-401-8143 to discuss your mortgage renewal options and help to get you thru this B20 Stress test.