Stress Test Free Mortgage Solutions

While mortgage renewals will not be subject to this test, borrowers who can’t pass the new mortgage stress test will be forced to renew with their existing lender, eliminating the ability to shop for better rates or borrow against the equity of their home.

While there might not be a lot you can do to make the math favour your situation, it is a good idea to consult a mortgage broker before signing your renewal, especially if you want to borrow against your home equity.

With all Canadian borrowers being subjected to the new mortgage rules, borrowers are looking for alternative solutions to avoid having to qualify based on the mortgage stress test; fortunately, there are options. While all federally regulated lenders are forced to comply with the stress test, there are several lenders who are exempt.

With rejection rates skyrocketing with the big banks and other lenders subject to the new mortgage rules, there has been a rise in alternative lenders to fill the void. While rates are modestly higher, borrowers who are consolidating high interest credit card debt, paying off consumer proposals and bankruptcies or need an influx of cash can benefit greatly from these alternative lenders.