New Mortgage Rules

Effective January 1, 2018, Canadians who may be renewing, refinancing and those looking to obtain a mortgage have to show they can pay any new interest rate substantially higher than the current rate they have.  This routine is called a stress test which is applicable to our Canadian Banks however many Credit Unions do not follow the same path.  The new Canadian federal financial regulator announced that even Borrowers having 20% down payment or more will still have to face a stress test for qualifying,    During 2017, this method only applied to those applicants with smaller down payments and also those who were either obtaining Mortgage Insurance from Canada Mortgage and Housing Corporation CHMC or from Genworth.  Credit Unions are regulated provincially so they do not have to adopt those rules.

Canada Mortgage and Housing Corporation

Genworth

Get a Better Mortgage

Credit Scores

What’s in force

1. Mortgage Stress Tests determines how much house you will be able to buy
2. Meant to ensure that Consumers can withstand a rise in interest rates.  
3. The higher of either the bench mark mortgage rate 4.9% or the current rate plus 2%  percentage points.    
4. The Banks want to make sure that if you find a home, you do not run the risk of not qualifying in the new year.
5. Renewing Mortgage - with your current bank you do not have to qualify, only if you are changing financial institutions
6. Refinancing - you have to qualify because you are taking on new debt so the stress test applies

Get a Better Mortgage  

A variety of the types of Mortgage Financing you will need

1. Buying your home whether your First Home or Next Home
2. Buying an investment property
3. Buying a second home
4. Self Employment
5. Debt Consolidation
6. Private Mortgages

CHIP Reverse Mortgage

Understand more on Reverse Mortgages is the first Step

1. You always maintain title ownership of your home
2. You have the ability and freedom at any time when and if you move or sell
3. Clients can quality up to a 55% of your homes appraised value however an average is 33%
4. It is tax free money and allows your retirement savings to last a little longer
5. Help to free up cash

Why use a Mortgage Broker

Enjoy qualified personal services

1. Brokers primary expertise is locating funding for mortgage financing
2. Brokers are not employed by lending institutions and are not limited to services
3. Brokers are paid by lender but represent the Buyer
4. Brokers work with over 25 lending institutions
5. Enjoy better negotiating power