Mortgage Market Changes
Effective in April – make sure you’re in the know
Home buyers and real estate investors need to keep up with some upcoming changes to mortgage rules that could affect their purchase, if they are applying for a mortgage with a down payment of less than 20% of the value of the property.
Qualifying for a Mortgage
Borrowers applying for a variable-rate mortgage or a fixed-rate mortgage with a term of less than 5 years must qualify based on the Bank of Canada’s five-year fixed posted mortgage rate.
A minimum down payment of 20% will be needed for government-backed mortgage insurance on non-owner-occupied properties such as rental properties. There are also changes in how much of rental income can be used when qualifying for financing.
Make sure you contact me about how to show proof of income to lenders, and access mortgage products tailored for your needs.
for the Information You Need to Know
For full details on the changes, and personalized advice on the mortgage that fits your needs, contact me for a free, no-obligation consultation.