If you're looking to buy a new home in 2018 you'll want to make sure you're familiar with the new mortgage rules. A new minimum qualifying rate has been set, also known as the "stress test" which impacts uninsured mortgages ( mortgage buyers with a down payment that is 20% of more of their home price ).
Potential home buyers wondering how their buying power has been affected by these changes can reference our mortgage infographic below to help get a sense of what what their affordability will be based on income. If you have any questions about the new Canadian mortgage rules you can contact us and we'll be happy to help.
Starting in the new year those individuals applying for uninsured mortgages will face tougher rules when it comes to qualifying for a mortgage.
THE NEW MORTGAGE STRESS TEST
As of January 1st, 2018 the Canadian Mortgage and Housing Corporation has released a new stress test that home buyers will need to qualify for before receiving an approval. Currently those buyers with down payments of 20% or more do not require mortgage insurance through CMHC. According to the Financial Post, This market will now need to
“Qualify based on either the Bank of Canada posted rate for the five-year fixed rate product or two percentage points above their contracted mortgage rate, whichever is higher.”
Currently uninsured buyers can qualify…