New rules coming into effect on January 1, 2018 will reduce purchasing power and refinancing capibilities. It is a highly anticipated move by the Office of the Superintendent of Financial Institutions. New qualifying rules will require all conventional mortgages to qualify at the greater of one of two things:

A] a rate 2% higher than the contract

B] the qualifying rate of 4.89%

These rules will impact mortgage affordability by approximately 20%.

What does this mean for you?

  • If you are considering purchasing a home with 20% downpayment, start looking more seriously to purchase PRIOR to January 1, 2018. A purchase agreement has to be in place prior to the new year, you can close however in the new year.
  • If you are looking to refinance for home renos, the purchase of a cottage or debt consolidation definitely consider doing this PRIOR to January 1, 2018.

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