October 7, 2016
There has been a lot in the news lately about a number of new mortgage rules coming into effect in the next little while. The government has chosen to move several variables all at the same time. You may be wondering how this will affect you. If you are considering a refinance you better do it soon for three big reasons:
1. The new qualifying rate used to qualify any client is moving up big. The effect will be to reduce your borrowing capacity by nearly 25%
2. Many lenders have already started to increase rates on refinances. Expect to see a 0.15% premium on refinances in the coming weeks
3. You soon won’t be able to grab a 30-year amortization, a very common choice for many Canadians
Any one of these changes is difficult to digest, but when you combine all three it means severe indigestion for anyone considering a refinance.
So, if you have been considering refinancing your home to consolidate debt, take some equity out or possibly complete some home renovations, do it now. Get your application in before November 29, 2016. All deals must fund by April 30, 2017.
For more information please feel free to contact one of our highly trained, non-commissioned based agents today.
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Note: Rules and guidelines are subject to change. Please inquire within.