Starting in 2010, lenders had to ensure that borrowers getting variable or 1- to 4-year fixed mortgages could afford payments at the 5-year posted rate. That rule applied to mortgages with less than 20% equity.

In 2012, OSFI asked federally regulated lenders to apply the same rule to all variable and 1- to 4-year fixed mortgages, regardless of equity. But some lenders, which are provincially regulated, were not bound by this guideline.

As a result, some lenders today let conventional borrowers (20 % down payment or higher) qualify for variable-rate mortgages using significantly lower rates. That makes it easier to get approved when your debt ratio is above average.

How much easier?

Consider a qualified borrower making $70,000 a year. As of today, that person can get a variable-rate mortgage as high as $483,000 at some lenders. With an insured mortgage, he or she would be capped out at roughly $413,000.

Questions on the best mortgage? Contact the Angela Calla Mortgage Team 604-802-3983 or callateam@dominionlending.ca