Looking for a place to call home? Read on, please!
New rules and regulations for mortgage borrowings are coming. Now more than ever you must be mortgage smart, well educated home buyers make better decisions.
Will be more rules for uninsured mortgage lenders too!
New: stress test for uninsured mortgages (those with a down payment of 20% or more).
The Office of the Superintendent of Financial Institutions unveiled its proposal that qualifying rate rise from 4.79% today to 5.25% starting June 1.
Your purchasing power of about 4% will be lost. In other words, your mortgage will be harder to get.
This means it will be harder to qualify for a mortgage. Generally, most uninsured borrowers who are well qualified will meet the new criteria with no problem, but if your borrowing capacity is nearing its limit, you should still run the numbers to make sure you qualify.
New taxes are going to be for foreign owners!
However, no significant measures were included in government budget announcements aimed at cooling the housing market, despite calls calling for the federal government to rein in house price growth.
Rules, taxes start making home ownerships harder and harder!
The proposed changes for the insured stress test will result in fewer homes being sold and fewer applicants being eligible because they will be in line with the proposed changes for the uninsured test. Mortgages with less than a 20% down payment would be affected.
Are you in the market for a new mortgage? Are you planning to renew your loan or are you considering refinancing?
To learn more please visit and ask for a Free Consultation session wit a MortgagePRO LTD. Professional or call 403-253-2022