Rule Changes Effective January 1, 2018

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Click this link for a summary of the stress test rule changes coming January 1, 2018: Understanding the rule changes Jan 1 2018

The short and sweet:

  • If you are applying for a mortgage and you have 20% down this new rule will lower how much mortgage you qualify for.
  • You CAN still buy a home with as little as 5% down.  Mortgages with less than 20% down aren’t effected by this rule change.

In My Humble Opinion…

  • The continued tightening of the mortgage lending rules is just another version of increasing the interest rates.
  • This will create some (not big, but some) downward pressure on higher priced homes in the Calgary area.
  • This will effect less than 10% of applications.

Questions?  Call me, I would love to help you build a mortgage plan.

Scott Grubbe


The I Just Got Laid Off Mortgage

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The I Just Got Laid Off Mortgage

Alternative lenders are very useful when a client needs to fill a gap that the banks don’t want to touch.  They like clients who are new to being self employed, or have bruised credit that needs to be repaired.

One alternative lender has started to fill the gap for salaried employees that have been laid off due to the downturn in the economy.  This mortgage can be set up so the borrower doesn’t have to make any payments for a year.  The mortgage depends on reasonable equity (down payment) and reasonable grounds that full time gainful employment could be found within a year.  Each deal is assessed on it’s own merit.

This could be a deal saver for people with an accepted offer on a house, or people who need to re-finance and avoid falling behind on bills.