Implementation NEW OSFI Mortgage Rules - Time to Act is NOW!

Introduction:

The NEW mortgage rules being implemented by the regulator of Canadian Banks (OFSI) take effect this coming Jan 1, 2018!  Given that affordability will be eroded for many Canadians, there is no better time to speak to a mortgage broker regarding your options!

For information on the new mortgage rule changes click here

The Time to Act Is NOW:

New Purchases (prior to Jan 1, 2018)

·        If a legally binding Purchase and Sale Agreement is dated/signed prior to January 1, 2018, regardless of closing date, the customer will qualify under the old rules.

·        If the legally binding Purchase and Sale Agreement is dated/signed on or after January 1, 2018, the customer will have to qualify under the new rules.

New Purchases (prior to Oct 17, 2016)

Note:  Oct 17, 2016 was the implementation date of the 1st Stress Test.

·        If a legally binding Purchase and Sale Agreement is dated/signed prior to Oct 17, 2016, regardless of closing date, the customer will qualify under the old rules if and only if their down payment is less than 20%.

Refinances & Transfers

·         If a mortgage is submitted and approved by lender prior to Jan 1, 2018, you will have 120 days from that date to close your deal.

Conclusion:

If you are planning on purchasing, refinancing or renewing in 2018, the time to speak to someone about your options is today.  We will make sure to go over your options so that you will be able to make an informed decision.

We have a long history of helping people through these tough times.  As long as you understand these changes and the impact on your family, there are plenty of options for you to act in a prudent manner and take advantage of it.  This latest change is no different. Drop by or give us a call to find out more.