More rule changes mean more reasons to use a mortgage broker

The next new mortgage regulation, which comes into effect 1 January 2018, will require borrowers to qualify based on a rate that is 2 percentage points above the contract rate or the Bank of Canada posted 5-year rate (currently 4.89%), whichever is higher. The “stress test” criteria used to be for insured mortgages where homebuyers were putting less than 20% down. On January 1st, however, it will apply to all homebuyers!
The government felt these new rules, along with previous regulations, were necessary to ensure Canadians can afford their mortgage debt in the event interest rates were to rise over the coming years (which they’ve already started doing, albeit slowly) and to slow price appreciation, particularly in larger Canadian cities.
As many as 1 out of 6 homebuyers could be affected by this new qualification requirement. They would either have to put more money down, purchase a less expensive home, or simply look at other possible options.
Regardless if you are affected by the new rules or not, getting a mortgage seems to be getting more complicated and having the expertise of a mortgage professional on your side matters now more than ever. There are various solutions to help you get into the home of your dreams including access to lenders, including credit unions, mortgage investment companies, and so on.
As mortgage professionals, we know how important home ownership is for you and helping you find the right mortgage that fits their situation is what we do best. Again, the new rules come into effect in just two months, so if you want to buy or refinance, let’s get ahead of the changes and see what we can do.
Contact us today.