New Rules Regarding Purchasing Power for Homes and Home Refinancing
B-20 Rule Changes from the Office of the Superintendent of Financial Institutions (OSFI)
New rules in effect January 1st 2018 will reduce purchasing power for homes and home refinancing.
The new qualifying rules will come into effect January 1st 2018 requiring all conventional mortgages to qualify at the greater of; a rate 2% higher than the contact rate, or the qualifying rate (currently 4.89%). The new rules will impact mortgage affordability by approximately 20%.
What does that mean for the average Canadian?
If you are considering purchasing a home with 20% down payment, start looking more seriously and purchase prior to January 1st 2018. Your purchase agreement must be in place prior to January 1, 2018 to qualify under the existing rules; however, you do not have to have closed on a home prior to January 1st.
People looking to refinance their existing home for debt consolidation, home renovations, purchasing a cottage, or other major financial goals, should strongly consider refinancing prior to the qualifying rules changing on January 1st 2018!
Thinking about moving? Click on the contact link next to this post to get started!
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