Stress Test Citadel Mortgages

Our modern-day Canada really is a cultural mosaic, you’ll find yourself surrounded by people from all over the world at every corner. Whether you’re taking the subway home, or walking to work, you will find masses of people who are different in so many ways yet blinded by their Canadian identity so beautifully. Multiculturalism is a part of Canada and it’s population, you won’t feel the need to blend in because in Canada its okay to stand out.

Along with multiculturalism, Canada hosts a number of benefits for its locals which include but are not limited to affordable healthcare, employment schemes and an all-time low crime rate.

On the other hand, while Canada is home to affluence, efficacy, and welfare; actually finding a home for yourself and your family can get tricky. Living in Canada comes with its own opportunity cost, and it’s none other than its increasingly impossible mortgage problem.

Today, Canadians are facing extremely burdensome levels of debt, according to numerous reports.

The fragility of the situation has reached a new high as the Manulife Bank of Canada informs us in their recently published Homeowner Debt Survey ( Manulife Article) that 72% of mortgage holders wouldn’t be able to manage a 10% increase in their monthly payments. This simply means that a mortgage has become expensive to the extent where it has become unmanageable if it were to increase even slightly.

“The truth about debt in Canada is that many homeowners are not prepared to adjust to rising interest rates, unforeseen expenses or interruption in their income,” said Rick Lunny, president, and CEO of Manulife.

Unsurprisingly, only one in five Canadians claimed that a 10% increase in monthly payments wouldn’t become a source of financial strain upon them. At a time like this, locals really thought could the Canadian Mortgage problem get worse than this?

And to answer that question, yes it can and it did. The new Canadian Mortgage Stress Test has been created to ensure that Canadians who are applying for a mortgage will continue to possess the ability to complete their payments easily even if rates increase in the future.


In order to pass the mortgage stress test, it is absolutely compulsory for you to qualify at your contracted mortgage interest rate plus 2% or the Bank of Canada’s current five-year benchmark rate, whichever of the two is greater.


As a result of the stress test, the purchasing power of the number of new homebuyers has decreased by a hefty 20% because they’re only eligible for a lower loan amount at the mortgage stress-tested rates.


Although this stress test was produced to overcome the household debt predicament in Canada and avert buyers from getting themselves into greater debt by taking on a mortgage that they can’t even pay, the new Canadian Mortgage Stress Test has made it even more difficult for current homeowners to refinance or renew their mortgage.  You can use this stress test tool yourself to see how this can impact your mortgage power. Try the stress test tool today


By using a mortgage agent or mortgage broker from Citadel Mortgages, you will be able to ask all the questions you have and be ensured you get the best advice and mortgage product for your mortgage needs. Contact us here at Citadel Mortgages to become mortgage-free sooner!

Want to learn more? Call us toll-free at (866) 600-8762  Learn More Today

If your ready to proceed with a mortgage approval, refinance or equity take out a mortgage then apply now by using this link – –

First Time Home Buyer Programs in Ontario





Call Now ButtonCall Now