How Canada’s New 2018 Mortgage Rules Could Affect You

October 28, 2017


Watch the following video for the breakdown of the implications of the new mortgage approval rules the Government of Canada is instituting in January, 2018. Barbara Gloor, veteran Squamish Realtor, interviews Mortgage Broker, Michele Ellis, to get the details of the impending changes to mortgage approvals. She reviews what the new rules mean for buyers, sellers, and those looking to refinance or renew their mortgages. Stay tuned until the end of the video to hear Barb’s take on the new rules, and what she recommends to those who will be affected.

Be sure to share this video with any of your friends and family who might be affected by these changes, by clicking on one of the social icons at the bottom of the post.

The 3 key points to take away from Barb’s interview with Michele are as follows:

1) Don’t Panic: it’s not the end of the world, this is just leveling the playing field for everyone: for insured or uninsured mortgage applications, regardless if you have 20% down or not.

2) Get Pre-approved: Your best plan of attack is to get your mortgage pre-approval in writing, not just a rate hold. This way you can go shopping for a home in your true price range.

3) Expect 20% Less Buying Power: Reality is, know that everyone will qualify for 20% less than you previously were able to get in 2017, because this will take effect January 1st, 2018. These new rules will apply to everyone, whether you are a first-time homebuyer, or if you want to take equity out of your home to purchase another property or investment property, or to refinance for, say, renovations. In most cases mortgage renewals will not be affected, so as long as you’ve been paying your mortgage on time and you’re still with the same provider. Renewals will not generally be affected. If you have any further questions or wish to discuss this further with me please give me a call at 604 – 8 9 2 – 4 4 2 8 or send Barbara an email. Happy house hunting!