Many people are aware that Canada’s mortgage landscape has changed significantly over the past year or so. Most recently, there were (January 1st, 2018) major mortgage rule changes that affect borrowers who sit to purchase property or refinance their existing property.
The new rules require a borrower with more than 20% equity or downpayment to qualify at 2% higher then the rate they are paying on in the real world.
These rules will erode affordability by up to 20% for both purchases and refinances – http://www.moneysense.ca/news/what-the-new-mortgage-rules-mean-for-homebuyers-in-2018/
The question is; do these rules affect all lenders in Canada?
On paper these rules are applicable only to Federally regulated financial institutions. However, many Credit Unions, who are Provincially regulated have already adopted the new B-20 rules. Today, though while doing my due diligence, I have found that there are still some Credit Unions who have not adopted the new rules and therefore are still allowing borrowers to qualify under the old rules.
This is very important to understand as this allows people who are highly indebted with lower incomes to be able to, still in most cases, be able to refinance their homes and be in a position to consolidate maxed out credit cards or other needs that refinances address. Secondly, allow borrowers to afford more home for their income level.
Now more then ever it is in a borrower’s interest to work with a reputable and knowledgeable Mortgage Agent.
I can truly help you have more money in your life and protect your interest, as I am an expert on the varying policy of the different specie of lender (Big Banks, Credit Unions, Trust Companies and Monoline Lender).