Mortgage rules have changed. Again. What does this mean for you?
The changes, which take effect January 1st, 2018 and have several impacts to you as a borrower:
- The average Kingston household will qualify for a $55,000 smaller mortgage. This represents a DECREASE of 15% in your borrowing power – no matter what you do or where you
- Banks must now review the amounts of money they lend based on where the property is, which means if you live in a rural area you may not be able to borrow all the money you need;
- ‘Packaged’ mortgages (marketed combinations of 1st & 2nd mortgages) – which exist to help those who cannot obtain standard financing – are now no longer allowed…second mortgages remain available, however your alternatives may be limited.
- As your mortgage renews, if you can’t get the mortgage you need, your bank has no obligation to be competitive when offering you a further term. This is bad news for every Canadian
Call us today. Things are changing. If you even THINK you might be buying a home or borrowing in the coming year, you need to speak to us now. The Mortgage Professionals have the tools and expertise to get you what you need.
Leo Ragusa – The Mortgage Professionals
613.876,0777 – firstname.lastname@example.org