What is the current minimum stress test rate that federally regulated lenders must use under the B-20 guideline?
Correct Answer
B) The greater of contract rate plus 2% or 5.25%
Under OSFI's B-20 guideline, federally regulated lenders must qualify borrowers at the greater of their contract rate plus 2% or 5.25%. This stress test ensures borrowers can handle potential rate increases and maintains financial stability in the mortgage market.
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