Wondering how the new mortgage rules will impact you? Find a summary of the new regulations and how they could affect you below:
Ottawa plans to move forward with regulations that would make it tougher for Canadians to qualify for uninsured loans, affecting consumers with down payments of 20 per cent or more.
Uninsured borrowers can currently qualify for a mortgage at rates as low as 2.97% on a 5-year fixed under the regulations in place. However in a few months that hurdle will jump to almost 5%. This will have a huge impact on Canadian markets and will potentially affect 1 in every 5 Canadians with 20 per cent equity.
It will impact you if:
1. You are putting 20% or more down
2. You were planning on purchasing to the max of your borrowing power.