New Mortgage Rules And What It Means For You
(written November of 2016)
Effective October 17, 2016 (announced on October 3, 2016), mortgage rules changed for you and every other Canadian. In an effort to get control of Canadians borrowing, and to help cool over-heated markets like Vancouver and Toronto, the Canadian Government implemented some new borrowing rules for Canadians who are purchasing homes.
So what was changed?
They have implemented what is called an interest rate “stress-test.” How it works, is:
“To help ensure new homeowners can afford their mortgages even when interest rates begin to rise, mortgage insurance rules require in some cases that lenders “stress test” a borrower’s ability to make their mortgage…