What is the current B-20 stress test requirement for uninsured mortgages in Canada?
Correct Answer
C) Qualify at the greater of contract rate plus 2% or 5.25%
OSFI's minimum qualifying rate for uninsured mortgages, applied by federally regulated lenders under Guideline B-20, is the greater of the mortgage contract rate plus 2% or 5.25%. The 2% is OSFI's buffer and 5.25% is its floor; it is not a Bank of Canada benchmark rate, and OSFI reviews both at least annually.
Why This Is the Correct Answer
OSFI's current minimum qualifying rate for uninsured mortgages is the greater of the contract rate plus 2% or 5.25%. This answer states both the buffer and the floor correctly.
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