How Canada’s New Mortgage Rules Will Affect You
Wondering how the new mortgage rules will impact you? Find a summary of the new regulations and how they could affect you below:
Ottawa plans to move forward with regulations that would make it tougher for Canadians to qualify for uninsured loans, affecting consumers with down payments of 20 per cent or more.
Uninsured borrowers can currently qualify for a mortgage at rates as low as 2.97% on a 5-year fixed under the regulations in place. However in a few months that hurdle will jump to almost 5%. This will have a huge impact on Canadian markets and will potentially affect 1 in every 5 Canadians with 20 per cent equity.
It will impact you if:
1. You are putting 20% or more down
2. You were planning on purchasing to the max of your borrowing power.
3. You were planning on using a 5-year fixed rate.
4. You intend on purchasing a home after January 1, 2018
How will the market be affected?
Due to these new regulations there is going to be a large influx of deals closing before January first. This will most likely artificially inflate the costs of many homes in the region.
If you remain indecisive for too long, you could lose your current spending power and be forced to spend more to get your new property. If you are considering buying or selling later in the year, it may be a good idea to reconsider and do so now. The best way to figure out your specific needs is to contact an expert like us for some free advice.
What should you do? Well for starters if you were thinking of buying or selling in the spring, you should seriously consider doing so now instead. Waiting may affect your ability to close.
If this all seems a little overwhelming don’t worry, that’s why we are here. The best thing for you to do now is call a professional for some free advice. Give us a call today at: (604) 379-2000