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More mortgage rules changes we expected as we approach many lenders year ends.

General Angela Calla 29 Oct

The Change

Conventional mortgages now to be underwritten using benchmark rate*

Five-year variable rate conventional mortgages  or conventional mortgages with terms less than five years now require that the borrower qualify based on the greater of the Bank of Canada five-year benchmark rate (the series V121764) or the contract rate applicable to the term chosen. For terms of five years or more, the qualifying rate is the contract rate.

example: contract rate or lower term special from lender 2.99 new qualifying rate 5.24% ***

The Affect

This means if you take a term for less than 5 years or choose a variable rate is that you will qualify for less home (but lets get real no less than you would havein 2007 when rates were just below 6% fully discounted)

The Angela Calla Mortgage Team is commited to keeping you informed so when you hear of a change you will understand the affects right away! Questions? Contact us 604-802-3983

Angela Calla, AMP