New Mortgage Rules Jan,1, 2018

Wednesday Nov 22nd, 2017

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New Mortgage Rules Starting Jan,1,2018.

Non insured mortgage consumers (buyers with 20% or greater down payment) must now qualify using new minimum qualifying rate.

The minimum rate will be the greater of the five year benchmark rate published by the Bank of Canada or the lender contractual mortgage rate +2%.

This will impact the affordability for the homebuyer.

For Example: (Current 2017)

Mortgage Amount: $400,000

Mortgage Rate: 3.44%

Monthly payment: $1,985.00

Minimum Income: $70,000

For Example: (Jan,1,2018)

Mortgage Amount: $400,000

Mortgage Rate: 3.44% + 2% = 5.44%

Monthly payment: $2,427.00

Minimum Income: $85,000

If you have any questions please contact me

Thank you


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