If you’re planning on refinancing your home perhaps for a renovation or to consolidate debt, I strongly encourage you to contact your mortgage specialist before new mortgage rules take effect January 1, 2018.

As your REALTOR®, I want to help keep you informed so you can make the best financial decisions when it comes to your real estate needs. If you have been considering a refinance, you will want to contact your mortgage specialist before the new year. 


New stricter rules mean you will need to pass a “stress-test” which essentially means that all homebuyers and homeowners must qualify for mortgage loans at the higher Bank of Canada’s five-year benchmark rate (currently 4.99%) or the mortgage rate offered by their lender plus 2% points. 

This new rule comes into effect on January 1, 2018. It could mean that a homeowner could qualify for up to 20% less than what they could qualify for today when doing a refinance.  


Remember, these new rules apply to everyone, regardless of how much equity you have in your home. Also, if you have been considering selling, it may be better to list now than to wait for 2018 when affordability will drop for many homebuyers. 

If you would like more information about the new rules, feel free to reach out, I would be happy to discuss them with you.