New Mortgage Rules
Posted by Ken Richter on
The new mortgage rules that we have been warning you about have finally arrived. Global News writes that as of "January 1st, 2018, Canadians getting, renewing or refinancing a mortgage might have to prove that they would be able to cope with interest rates substantially higher than their contract rate." This stress test is to ensure that anyone applying for a mortgage could handle that mortgage, no matter what the interest rates jump to.
While this may not seem like a major deal, a recent "analysis by the Bank of Canada suggested... some 10 per cent of Canadians who got an uninsured mortgage between mid-2016 and mid-2017 would not have qualified under the new standards" (Global News). Even those able to put a full 20% down or more on their future home…
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