Mortgage rules have changed. Again. What does this mean for you?
The changes, which take effect January 1st, 2018 have several impacts to you as a borrower:
- The average Kingston household will qualify for a $55,000 smaller mortgage. This represents a DECREASE of 15% in your borrowing power – no matter what you do or where you live.
- Banks must now review the amounts of money they lend based on where the property is, which means if you live in a rural area you may not be able to borrow all the money you need.
- ‘Packaged’ mortgages (marketed combinations of 1st & 2nd mortgages) – which exist to help those who cannot obtain standard financing – are now no longer allowed. Second mortgages remain available, however, your alternatives may be limited.
- As your mortgage renews, if you can’t get the mortgage you need, your bank has no obligation to be competitive when offering you a further term. This is bad news for every Canadian homeowner.
Call us today. Things are changing. If you even THINK you might be buying a home or borrowing in the coming year, you need to speak to us now. The Mortgage Professionals have the tools and expertise to get you what you need.
The Mortgage Professionals
T: 613-384-4000 | firstname.lastname@example.org