How The New Mortgage Rules Have Affected Home Buyers
Mortgage seekers and home buyers don’t look back at the start of 2018 with any fondness because the dawn of the New Year witnessed the introduction of the ‘stress test’ and new mortgage rules. These new changes derailed many of the plans people had when it came to purchasing a home or renewing and refinancing their mortgage.
As per the new legislation, even buyers with a 20% or higher down payment must undergo a stress test, and must be able to meet a minimum qualifying rate equal to the greater of the Bank of Canada’s five-year benchmark rate or their contractual rate plus 2%. In other words, if you are planning on purchasing a home, or renewing and refinancing your mortgage, you have to have more money to buy a house than in previous years.
These new mortgage rules and changes have made getting a mortgage approved from banks and credit unions tougher than ever before. Apart from preventing clients from purchasing homes, it has also obstructed first-time home buyers from qualifying for a mortgage, which I believe these new changes are a bad legislation. People should get together and put some pressure on the government to relax the mortgage rules.
Unfortunately, it looks like these new rules and regulations are here to stay for the foreseeable future, so if you’re planning on purchasing a home, or renewing and refinancing your mortgage, get in touch with Tony Hundal at the Axis Mortgage Corp. By working with a broker, you have an ace in your hands as your mortgage broker will know the ins and outs of the new rules. They can give you the best advice to achieve the goal of getting financing for your new real estate purchase.
As the best residential and commercial mortgage broker in Surrey, BC, I will help you with debt consolidation, mortgage pre-approvals, first time home buyer mortgages, and investment property mortgage services to clients across Surrey, Delta, Richmond, Burnaby, White Rock, Abbotsford, Chilliwack, Langley, Vancouver.