Get ahead of The New Mortgage Restrictions
Well the Bank of Canada did not raise the rate today, but time is running out for home buyers with less than 20% down to obtain a 35 year amortization on their mortgage.
This reduction in the amortization will reduce a borrower’s maximum financing by 7.5%, so if you currently qualify for a $300,000 purchase, you will only qualify for a $277,500 after the rules come into effect. Remember also, that if you write an offer and your application is sent to CMHC before March 17th, that you are grandfathered and will qualify for a 35 year amortization, so your deal doesn’t have to close before the deadline, you just have to write an offer and apply for financing before that date.
Any Real Estate related questions – contact us anytime.