Mortgage Rule Changes from 2018
The following criteria is not relevant to anyone applying for mortgages with less than 20% down, nor to people who are renewing their existing mortgage.
Now, what is being called the “stress test” or Guideline B-20, will require borrowers to qualify for all conventional mortgages (those with more than 20% down) regardless of their downpayment using the highest interest rate + 2% or using the Bank of Canada benchmark rate whichever is higher.
Who will this change affect?
* Current homeowners who have more than 20% equity and want to access the equity by refinancing.
* Those who have more than 20% down, but would like to borrow more than 80% of what they currently qualify for.
There may still be a way for these buyers to borrow so it would be a good idea to talk to your mortgage broker or banker.
These changes took effect January 1, 2018 unless the borrower/buyer has a signed Contract of Purchase and Sale prior to January 1, 2018.
If you’re looking to buy real estate in the Comox Valley or you want to list your home for sale. Contact Janice Leffler today!