Mortgage Stress Test Thoughts 

We have seen a lot of articles recently talking about the financial Stress Test imposed when one applies for a mortgage. The words alone make Buyers worry about the implications of affordability. After all, who needs more stress? Let me help reduce the worry and shed some positive thoughts about these new criteria in applying for a mortgage.

For a better understanding, let’s add a little perspective. Think about mortgage markets in previous years, some of us may recall when the interest rate was 22%. The good news is that interest rate did not last too long and we then moved forward to this past year when interest rates were 2%, much better right? Fortunately, or unfortunately, neither of those extreme rates stayed with us. So it is important for the stability of our purchase, our budgeting and our investments that we take a more balanced approach to the possible costs of borrowing. 

From that perspective the Stress Test is helping all of us to be more prudent in our purchases and the long-term costs. By extension the more stability that each of us have in our personal financial commitments, the more stability we will all enjoy in the housing values. Which in many cases form the very foundation of our investment future. Don't be stressed by the Stress Test. 

The information from the Stress Test will help guide your financial decisions for future comfortable living. The house you purchase is your new home and should be your comfort space. The less worry you have with every new interest rate increase announcement the more pleasant your enjoyment of your new home and yes, less stress.