Julian Lau

There have been talks that the federal government will increase stress test rate in June. It might go up to 5.25% from currently 4.79%. 

What does that mean in terms of qualification? Actually it does not have a whole lot of impact. To qualify for $1 million of borrowing from a traditional lender, you will need about $10,000 more of annual income. 

However, it might mean the beginning of more federal government intervention of this red hot real estate market. Will the government be able to cool it down without crashing it? That is probably the biggest question.