How The New Mortgage Rules Have Affected Home Buyers
2018 hasn’t been the best year for mortgage seekers or home buyers. The dawn of the New Year witnessed the introduction of the ‘stress test’ and new mortgage rules which put a spanner in the works for people contemplating purchasing a home or renewing and refinancing their mortgage.
As per the new legislation, even buyers with a 20% or higher down payment must undergo a stress test, and must be able to meet a minimum qualifying rate equal to the greater of the Bank of Canada’s five-year benchmark rate or their contractual rate plus 2%. In other words, if you are planning on purchasing a home, or renewing and refinancing your mortgage, you have to have more money to buy a house than in previous years.
These new mortgage rules and changes have made getting a mortgage tougher than ever before. However, with the right kind of professional help, you could find a way to finance your purchase. This help can be obtained by enlisting the services of an expert mortgage broker as they will help you understand what you qualify for and how to work towards achieving it.
By working with a broker, you have an ace in your hands as your mortgage broker will know the ins and outs of the new rules. They can give you the best advice to achieve the goal of getting financing for your new real estate purchase.
The truth is these new rules and regulations are here to stay for the foreseeable future, so if you’re planning on purchasing a home, or renewing and refinancing their mortgage, get in touch with GTA Financing Solutions. As the best mortgage, auto, private financing company in Etobicoke, Ontario, we pride ourselves on our ability to help you find a mortgage product that suits your needs and abilities. We also offer the best mortgage rates to clients across Mississauga, Brampton, Hamilton, Ajax, North York, Toronto, Pickering, Markham, Vaughan, Milton, Richmond Hill, Oakville, and Burlington.