How do new mortgage rules impact your clients



Yesterday, OSFI (Office of the Superintendent of Financial Institutions) has announced yet another mortgage tightening rule on financial institutions. This time it affects your clients that have more than 20% down payment.

I wanted to take the time to show you how this will affect the buying power of your clients as of the new year. Clients will no longer qualify on their contractual rate, they will have to show a capacity of repayment if the rates were to raise by 2%.

What does that really mean?


For example: if you have clients who earn $100,000 as a family income and have no other debts. Under today’s rules they can qualify for as much as $649,000 mortgage. As of January 2018, that same family will qualify for $518,000. This is considering they have no car payments, no loans etc…

If you have clients hesitating their purchase, have them review if they will still have the same purchasing power come the new year. We only have 2 and a half months left before this change.

If you wish to have that explained further, I am always within reach.

Have a great afternoon!

Karolina Pawlowska | Conseillère Financement Résidentiel | Home Financing Advisor

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