Effective January 1, 2018 the Office of the Superintendent of Financial Institutions will require tough new mortgage rules for home buyers and mortgage refinances. These guidelines will have a significant affect on mortgage qualification for anyone purchasing with more than 20% down or in the case of a refinance, more than 20% equity in their home.
At this time, it is not known how this will affect credit unions as they are regulated differently.
The main focus of these changes will be –
• the minimum qualifying rate for uninsured mortgages
• expectations around loan-to-value (LTV) frameworks and limits
• restrictions to transactions designed to work around those LTV limits.
Geoff Lee – mortgage agent with Dominion Lending Centres explains it in laymans terms. Click here.