New Mortgage Rules in Canada 2018

Monday Nov 27th, 2017


The new mortgage rules could eliminate 15% of Canadians from qualifying for a mortgage after January 1st, 2018. The mad rush has started as mortgage inquiries are up significantly.


- Anyone that has a mortgage renewal in next 12 to 20 months.

- Anyone thinking of buying in the next 12 months.

- Anyone that is needs or is thinking of refinancing their 
mortgage in the next 12 months.

- Rental property owners. Yes, you too.

- Future retirees with lots of home equity (newsflash..the new rules don’t take into consideration how much equity you have in your home.. your net worth is also irrelevant… it’s all about how much income you earn and declare…)

- All of these borrowers will be affected. If you’re not getting the message, anyone with a mortgage should be getting a review done NOW. Don’t wait until next year. You may not qualify for a mortgage.

With Canada’s new mortgage rules coming into effect on January 1, 2018, we want to help make sure you know how these changes may affect you. What you need to know about the new mortgage rules in Canada

Whether you’re a buying a home or refinancing, here are the basics of what you need to know about the new mortgage rules:

New rules take effect January 1, 2018: Check with your Mobile Mortgage Specialist on how this can affect your mortgage loan if you've applied before January 1, 2018. If you do not have one contact Elaine to hep you find the right one for you.

Home buyers with a down payment of 20% or more will now be subject to stricter qualifying criteria (also known as a "stress test") that would determine whether a homebuyer would be able to afford their principal and interest payments should interest rates increase. This stress test would use either the 5-year benchmark rate published by the Bank of Canada or the customer's mortgage interest rate plus 2%, whichever is the higher.

New rules don’t apply if you’re renewing your Mortgage: The new rules only apply to new mortgage loan agreements. They do not apply when renewing your existing mortgage loan with. Unless otherwise stated by your bank or mortgage specialist.

Understand what type of mortgage best fits your means: A mortgage specialist can help make sure you are prepared with the knowledge you need to make your mortgage decision - before and after the new rules take effect.

The count down is on 3 weeks away until Jan 1, 2018 get pre approved today to get locked in before the 2018 deadline.

Looking to Buy or want to ask me a question feel free to Contact Elaine LeBlanc Sales Representative at Properties Unlimited Realty Ltd., Brokerage for more information at (416) 424.1300.


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