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New Mortgage Rules - January 1, 2018


Blog by | November 29th, 2017


Last month the Office of the Superintendent of Financial Institutions (OSFI) confirmed the implementation of a new minimum qualifying stress test for uninsured mortgages. Guideline B-20 now requires borrowers who have a down payment of 20% or more to qualify for a mortgage at a higher rate. Borrowers will have to be approved at either the five-year mortgage rate published by the Bank of Canada (currently 4.99%) OR the mortgage rate the federally-regulated financial institution offers plus 2%, whichever is higher.

The revised Guideline B-20 comes into effect on January 1, 2018. However, if a borrower has put down a deposit and received a mortgage eligibility assessment or pre-approval from a federally-regulated lender prior to January 1, 2018, the lender has the discretion to offer the loan based on the pre-existing guideline (including the prior qualification rate).

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Alexandra Axsen
Lake Okanagan Realty Ltd.
Owner/Managing Broker
Tel: (250) 870-2792
Email: Alex@LakeOkanaganRealty.com
www.LakeOkanaganRealty.com