New Mortgage Rules
The changes to Canada’s Mortgage Rules on January 1st, 2018 could impact you so here is what you need to know:
- As of January 1st, all uninsured borrowers looking to qualify for a new mortgage will have to undergo a “Stress Test”. For this test, borrowers will have to qualify at a rate 2% higher than the rate they will pay. For example, if the current mortgage rate is 2.97%, you would need to qualify at a rate of 4.97%.
- This will not affect your monthly payments as they will remain at the lower rate but will require significantly more income to qualify for the same amount (upwards of 20% more income).
- If you have an existing mortgage, you will not be required to undergo a “Stress Test” to renew it, but if you choose to switch lenders, you may need to.
Contact me today for more information!