New rules aimed at making it harder to get a mortgage will take effect on January 1, 2018 a move that is bound to have an impact on demand for homes in Canada.
Do you currently have an insured mortgage with less than 20% down? Are you just getting by making your monthly mortgage payments?
If so, Jan. 1, 2018, should be an important date that you should mark on your calendar.
That’s when our banking regulator’s new mortgage stress test officially kicks in. And if you meet the criteria above, you may not qualify for as big a mortgage next year as you would this year..
The changes could take effect as yearly as this year.
The Office of the Superintendent of Financial Institutions (OSFI) tells us that “approved loan applications occurring between October 17, 2017 and January 1, 2018 might be subject to the new rules, depending on the institution. This is because … where possible, institutions are encouraged to comply with the new rules as soon as they can.”
So far big banks have not adjusted to this new formula, but we can see them adopting these changes as early as December.
Attend our Seminar November 18th and 19th and find out how these changes will impact YOU.
- . Learn how this will impact you if you have above-average debt ratios?
- . How this will impact home prices in the New Year?
- . How will these changes impact your home equity and your ability to easily consolidate high interest debt?
- . Are ALL lenders bound by the OSFI’S new rules?
- . What are your options if you can’t qualify for at a bank due to the new rule changes?
- How will the changes affect existing mortgage applications?
- Will banks honour pre-approvals?