New mortgage rule and how it affects you and your clients.
Have you heard the latest news on the new mortgage rule? Read the Financial Post article here.
1. You are not going to be paying a higher mortgage rate. (You only have to qualify at the higher rate A.K.A. – Stress Test)
2. New rule applies to ALL clients, and ALL mortgages, except if you have a firm approval in place as of December 31st, 2017.
3. The new rules begin January 1st, 2018.
4. This new rule will decrease the amount you can borrow when purchasing a home, or when refinancing to borrow against the value of your home. (sometimes as large as 20% reduction in potential affordability)
Please call Cathy and Tanya Rocca at The Rocca Sisters & Associates for further details, our team is happy to help educate you on this. 905.335.4102