Posted in Effective January 1, 2018, borrowers dealing with a federally regulated financial instution (basically all lenders with the exception of credit unions) will have to qualify based on an artifical stress test. This rate has been set at 2.0% higher than the actual rate on the contract.
The impact in some cases will be rather minimal (mainly for buyers with less than 20% down), but it will have a huge impact on buyers attempting to trade up to a larger home (that may have a larger down payment) and for borrowers looking to switch between lenders at renewal.
As such, getting professional advice on a suitable mortgage strategy will be more important than ever! Voted Trenton's favourite mortgage broker the last 8 consecutive years, I'd be honoured to have the opportunity to earn your business.
#mortgagerulechanges #trentonmortgages #craignickerson
