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You Can’t Escape This Time: New Mortgage Rules on Jan 1, 2018

A an announcement was made yesterday about new Canadian mortgage rules that will come into effect Jan 1, 2018. I have been so busy posting and responding to comments on Facebook and by email, that I thought it would be a good idea to post this on my website! What do these new mortgage rules mean? Folks will qualify for a lower mortgage amount if they apply after January 1 than if they do before December 31, because they will all be stress-tested now… which means, if the interest rate they qualify for is 3.24%, the borrower will be tested at a rate of 5.24% (a +2% increase) to see if they can still qualify for the amount requested. Obviously, folks can borrow less if the rate is 5.24% vs. 3.24%. This will affect new purchases and refinances alike, whether high ratio or conventional (i.e. 20% or more down payment). From […]

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