Here’s a short vlog that explains the new mortgage rule that is coming in to effect on January 1, 2018.
Highlights:
- Up until January 1, 2018, mortgage applicants with 20% down payment or more, were able to qualify under more favourable guidelines that essentially granted them higher qualification amounts. Compared to applicants with down payments less than 20% who had less purchasing power. That is going to change. It will now be a “level” playing field.
- Most of the change is the introduction of a qualification “stress test” that will now be applied to ALL mortgage applicants regardless of how big or small their down payments are.
