Under the B-20 stress test guidelines, at what rate must borrowers qualify for uninsured mortgages?
Correct Answer
D) The greater of contract rate plus 2% or 5.25%
OSFI's B-20 guidelines require borrowers to qualify at the greater of their contract rate plus 2% or 5.25% (the minimum qualifying rate). This stress test ensures borrowers can handle potential interest rate increases and economic stress.
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Ontario mortgage brokerages are licensed under the Mortgage Brokerages, Lenders and Administrators Act, 2006. Under O. Reg. 188/08, how soon must a brokerage deposit trust funds it receives into its mortgage brokerage trust account?
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