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.