What's changing on January 1, 2018?

Effective January 1st, 2018, new qualification rules will apply to Uninsured loans 

( 20% down or greater)

To my valued clients, I want to help you navigate through these new mortgage rule changes. I want to  help borrowers make informed decisions when buying a home in the new year.

WHAT'S CHANGING ON JANUARY 1, 2018?

The qualifying rate for all uninsured purchases and refinances will be the greater of:

Contract Rate PLUS 2%

OR

The Bank of Canada Benchmark Rate

There will be no change to the qualifying rate for Insured applications. ( less than 20% down) Insured applications will continue to be qualified using the greater of the contract rate or the Bank of Canada Benchmark Rate.

WHAT’S THE IMPACT ON THE BORROWER?

The new B-20 changes will have a direct impact on your purchasing power in the new year. The table below shows what a borrower with an annual income of $67K can afford today versus what they can afford in 2018 under the new rules. 

*Example assumptions include: 5 Year Fixed Rate: 3.09% / 25 Year Amortization / $700 in other monthly debts.

 

WHAT’S THE IMPACT ON THE PIPELINE?

All uninsured applications received prior to January 1st, 2018 where a commitment has been issued, will be subject to the old qualifying rules.GET YOUR MORTGAGE APPLICATIONS IN NOW!!!!!