Bank of Canada announced the rules have changed to make it tougher to qualify for an insured Mortgage. All Insured Mortgages will need to qualify under the Bank of Canada’s benchmark rate (currently 4.64%) on all the terms set out by the banks 4, 5 or more years.
For a conventional mortgage (20% or more down payment) mortgages that are back end insured the same qualifications will apply as of November 30, 2016. If you are looking at purchasing your first home and have limited income you may want to look at purchasing before October 17, 2016. Give me a call and we can discuss. This article explains it as well.
Any one that is in an existing mortgage and their mortgage is coming up for renewal - these rules would not apply to them…..