What you need to know:

Over the past few months, the government has been once again reviewing mortgage lending rules and working on changes to those rules.  Earlier this week, OSFI which is the regulator that governs how Federally Regulated Lending Institutions do business, announced changes to the Mortgage Qualifying Rules.   Those changes will reduce the size of the mortgage that you can now qualify for.

What you need to do:

Buying a new home?

If you are looking to purchase a new home you need to look into how the new rules impact your pre-approval.  This is even more important for those that are looking to purchase their new home after January 1st 2018.  The Mortgage Qualifying Rule Changes will have an impact on the max purchase price starting in the new year.

Thinking about refinancing?

If you have been thinking about refinancing, you need to speak with your Mortgage Broker. The Mortgage Qualifying Rule Changes will mean that you will qualify for a smaller mortgage starting in the new year.  If accessing the equity is important, then you should take the steps now to get things moving forward.

When do the new rules come into effect? –  January 1st, 2018

When do you need to act?   NOW!!!  – Connect with us directly to see how the new Mortgage Qualifying Rule Changes will impact you

For more specific information, please refer to the link below for a full 2 page PDF detailing the new changes.

October 2017 – Mortgage Qualifying Rule Changes

As always, you can connect with our team anytime to chat about your mortgage or mortgage related needs.

More Mortgage Rule Changes on the way??

One of the only guarantees in life is change.  Over the past few years, the real estate and mortgage markets have been in a constant state of change due to a high number and frequent amount of regulatory changes.  Currently the industry is bracing for another round of government imposed Mortgage Rule Changes that will mean changes to how you as a mortgage holder will qualify for your next mortgage.

If you are…

1. Currently looking to purchase a home or investment property

2. Thinking about refinancing to complete some much-needed repairs or consolidate some higher interest rate debt.

Then you should read carefully:

In short, the proposed Mortgage Rule Changes and qualifying guidelines are going to reduce the borrowing capacity of everyone (regardless of down payment amount) that is trying to qualify for a new mortgage.  The proposed mortgage rule changes in their current form would lead to a reduction of qualifying power of up to about 20%.

What do you need to know/do?

1. If you are currently house hunting and you think there might be a chance that you may not purchase until the new year, then you need to speak with your mortgage specialist to see how the proposed changes might impact your purchase plans. Once in place, any pre-approval you have in place will need to be updated.   When or if the new guidelines come into effect, your planned purchase price could be impacted.  Speak with your Mortgage Agent to find out if your max purchase price will reduce because of the pending changes. The impact on your qualifying limit might mean that you should consider moving quickly on a new home/property purchase.

2. Thinking about refinancing? Then now is the time to act.  If you have been holding off on that planned refinance, its time to consider moving forward.  The proposed changes could reduce your placed refinance by upwards of 20%.   Potentially trapping your equity in your home and reducing your ability to access the funds you need.  This round of proposed mortgage rule changes will not just impact home purchases. These mortgage rule changes are expected to impact your ability to refinance your current home/properties.

The take-away…

Do not let the government’s proposed lending rule changes get the better of you.  Know what’s coming and plan for it as best as possible.  Speak with us today about how the changes may impact your mortgage plans.