HOME BUYERS ALERT: MORTGAGE QUALIFICATION CHANGES
The Office of the Superintendent of Financial Institutions (OSFI) recently announced additional changes to the ones that came into effect November 2016. The new changes are effective January 1st, 2018. It should be noted that some lending institutions may adopt these new rules prior to January 1st
Low ratio mortgages will be subject to the Benchmark Rate Qualification guidelines which means that you must now qualify at a rate that is 2% over your negotiated mortgage rate, or the prevailing Bank of Canada rate, whichever is greater.
If you switch your mortgage at renewal to another lender, you must now qualify at a rate that is 2% over the negotiated renewal rate, or the prevailing Bank of Canada rate, whichever is greater. If you renew your mortgage with your existing institution, you do not need to requalify.
Call me to discuss these changes and how they may affect you