Mortgage regulation changes in 2018
There are more mortgage changes taking place in our current Canadian reality. As of January 1, 2018, Canadians need to have a larger down payment on a home or they will qualify for “less” home than they would have just a few weeks ago.
The Mortgage Advisors’ owner and broker Christa Tessier is a guest on “Let’s Talk Money with Dave and Reb” on this week’s show. Together they uncover what these changes mean for Canadians.
According to Dave and Christa, the number one major change is that uninsured mortgage consumers must now qualify using a new minimum qualifying rate (excluding credit unions and private lenders). The rate will be the greater of the five-year benchmark rate published by the Bank of Canada OR the lender contractual mortgage rate +2.0 per cent.
In other words, they want people to understand it may not be as easy to secure a mortgage as it has been in past years. With slowly rising interest rates, and these mortgage regulation changes, people need to take a look at their financial story, and seek advice.
These recent changes, also add to regulation changes that occurred in the mortgage industry in 2016. The government is making these changes in hopes of helping Canadian households get ahold of growing debt problems.
No one knows how these new regulations will affect the economy or housing market, but Christa and Dave want to encourage people to talk about their options with an office like More Than Enough, or Ottawa’s The Mortgage Advisors. It may be harder to get the home you were thinking of, but with planning, and discovering your options, Christa and Dave say this new terrain can be navigated.
To hear their conversation, tune in.