Well, unfortunately the changes we were all hoping would not happen have materialized. OSFI (the federal bank regulator) has confirmed that as of January 1, 2018 ALL uninsured mortgages (that is all mortgages with a loan to value of 1-80%) will now undergo a 'stress test' of qualifying at 2% OVER contract rate (that is the mortgage rate they are currently receiving) An article follows that outlines this well, it should be noted that this is the most aggressive rule change that has happened for many years as it affects every single mortgage.
If you are on the fence about re-financing or purchasing, it is worth a conversation to see what you will qualify for now and in the new year after the regulations are enforced.
Please let me know if you have any questions at all!
Have a good day,
Mortgage Specialist – Dreyer Group Mortgages Inc.
Member of the VERICO Brokers Network
Cell: 604-836-3317 Fax: 604-608-9307