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20 Oct

What do these new mortgage rules mean?

General

Posted by: Anne Martin

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.