Over the last 10 years, we’ve seen almost 170 different mortgage rule changes. If that doesn’t say talk to an expert, I don’t know what does…
The latest proposed change is looking like it will be increasing the benchmark qualifying rate, which means, this is a higher interest rate that you must qualify at when applying for a mortgage. This is to help ensure that if rates go up you will still be able to afford your mortgage payments and that your debt ratios are still within the provincial lending guidelines. These guidelines are in place to help protect you!
What we’re hearing is if you are purchasing with 20% or more down or you are refinancing your home, you will now need to qualify at an interest rate of 5.25% rather than the current 4.79%.
These changes are just a proposal, that will come into effect at the end of this month if it is passed. So, if you’re thinking of buying or refinancing this summer, let’s get the conversation started now so we can get you prepared before this increase!