Or rather, at least until they change again.
Today is the first day of implementation for the federal government’s new mortgage rules. As much as a few things have changed, much has not. In spite of the gloom and doom in the media, you can still get mortgage financing in Canada, relatively easily.
Based on the new rules, if you want to access mortgage funds, here’s what’s changed for you;
That’s correct. Nothing has changed in terms of your access. The new rules mean that you may pay more in interest terms for a product that does not fit the insurance model ( investment properties and refinances are top of mind), but the funds are still accessible.
Certainly, if you are a first time homebuyer you are limited; if you need default insurance, you’re limited to purchasing a home with a maximum value of one million dollars. Think about that for a moment, with 10 percent down, that means mortgage payments of fifty thousand dollars a year.
For that same mortgage and again, only if you need insurance, the government also want you to afford a payment buffer of another $10000 a year. But what if something goes wrong? Shouldn’t you have that buffer?
So for you, nothing has changed.
For the Mortgage Professional you engage, it means they will have to sift through the myriad changes, speak to two or three lenders about your application and then find the financing best suited to you and your needs, balancing cost against flexibility.
Hey, wait a minute, that’s always been our job!
As always, if you have any questions, need help or would like to run through some scenarios, please call or email.