There has been a lot of news over the past several months about changing mortgage rules in Canada.
The new rules are generally designed to make sure that buyers have the financial depth to comfortably handle an increase in mortgage rates and/or a decrease in property values – without being over their head in debt.
In addition to rule changes, the Central Bank has twice increased its “overnight rate” by 25 basis points, now standing at 1.0%. This rate influences the rates lenders charge for mortgages.
It is important to note that the new rules are very complicated and not all rates apply to all situations or all borrowers. And some of the most attractive rates come with very restrictive terms that may not be practical for you.
It has never been more important to use the services of a Mortgage Broker – I can recommend one for you.