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Bank of Canada makes it more difficult to get home loans

On Thursday , Canada’s banking regulator formalized a proposal to make it more difficult for home buyers to secure financing. Under the new qualification rules , which go in effect June 1 , 2021 buyers will have to show they can afford a minimum of 5.25 per cent interest rate.

Interest rates are unusually low. Borrowers and lenders both have roles to ensure they can still afford to service debt at higher levels.