A qualifying rate is the rate used to qualify certain mortgages. In the mortgage qualification process, lenders use these rates to calculate your debt - service ratio, which is the ratio between your debt and income. This serves as a gauge of your ultimate ability to repay the obligation over the life of the mortgage.
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These measures are intended to protect Canadians by providing them with additional flexibility to support mortgage payments at higher interest rates in the future.
For more information speak to your CIBC Mortgage Representative.