Just like you, I’m always learning and growing and listening to those that have gone before me. I’ve met some amazing mortgage broker colleagues along the way, and always love to share their knowledge and wisdom to my own readers and followers.
Today is no exception. Sometimes I just can’t say it better myself, so I share their words. Today, from Angela Calla I will share … More mortgage rules changes we expected as we approach many lenders year ends.
Conventional mortgages now to be underwritten using benchmark rate*
The Change
Five-year variable rate conventional mortgages or conventional mortgages with terms less than five years now require that the borrower qualify based on the greater of the Bank of Canada five-year benchmark rate (the series V121764) or the contract rate applicable to the term chosen. For terms of five years or more, the qualifying rate is the contract rate.
example: contract rate or lower term special from lender 2.99 new qualifying rate 5.24% ***
The Affect
This means if you take a term for less than 5 years or choose a variable rate is that you will qualify for less home (but lets get real no less than you would have in 2007 when rates were just below 6% fully discounted)
Should you have any questions or comments about ALL the new changes that have occurred in mortgage-land this year, please don’t ever hesitate to get in touch with me, I’d be honoured to answer your questions.