Hey You! Thanks for dropping by - make sure to watch the two minute clip below for the 3 mortgage changes you NEED to know right now!
Well, if you haven't heard the liberal government recently announced a whole bunch of changes for home buyers with less than 20% down (read this post for full breakdown & video). Along with this news the Bank of Canada announced an update to the prime lending rate on Oct.19/2016. So here's your top 3 Mortgage changes you need to know this week in Canada.
- Bank of Canada stays put - partially due to the predicted slower housing starts (as a result of the most recent mortgage rules) as well as slower economic growth the bank decided to keep the lending rate at 1/2%. This is good news for those in a Line of Credit, variable rate mortgage and any other loan based on prime, you can keep enjoying your CHEAP money. Currently the prime lending rate is 2.70%.
- New Mortgage Rules for Buyers with less than 20% in Effect - As we explained in a previous article (click here) all buyers with less than 20% down must now qualify for a mortgage at the "Benchmark" rate in Canada. This means that even though your rate may be far lower you must be able to qualify and prove you can make payments at a higher payment amount.
- New Rules to affect all "insured" mortgages on Nov.30th - The government is planning to follow through with changes which were more under the radar on the original mortgage announcement. Basically if you have a bunch of equity and would like to re-finance, invest or maybe you would like to purchase a home with more than 20% downpayment you can take another month to apply for a mortgage, to get your maximum approval amount and qualify at the lowest rate.