“What is the mortgage stress-test?” you might ask. This is all about a set of criteria set forth by the government and lenders themselves to ensure that you qualify for your mortgage now and in the future. Mortgage renewals and refinancing are considered in this stress test, as they are both possible to happen in the future as you move forward with your mortgage. This doesn’t affect how you apply for a mortgage, but it does apply higher interest rates as they could be foreseen in the future, to ensure that not only do you qualify for the mortgage now, but you will continue to qualify even if interest rates and other factors change.
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