Department of Finance - Mortgage Rule Changes for October 17, 2016
April 2, 2019 | Posted by: Mortgage InGenuity Inc.
Department of Finance Canada Announces New Mortgage Regulations Making it Harder to Qualify (Effective Oct. 17th)
Starting October 17th all insured mortgages will be qualified at the mortgage qualifying rate or 4.64% instead of the contract rate of 2.49%. Normally when you choose to sign a fixed rate mortgage, you qualify at the fixed rate of the term. for example a 5 year term at 2.49%. With the changes starting on October 17, you'll have to qualify at the Bank of Canada rate of 4.64%.
If you make $63000.00 per year and put 5% down, with 476.00/mth in debts, property taxes at 2500/yr Heat at 120/mth, today you can qualify for $330,000.00 based on the 5 yr fixed rate of 2.49%.
After October 17th: You will only be able to qualify for $270,000.00 with the same 5 yr fixed rate of 2.49% -- a difference of $60,000.00.