Mortgage Brokers More About Second Mortgage | Page 4

EVERYTHING TO KNOW ABOUT
C ANADA’S NEW MORTGAGE
RULES FOR 2018
• Who will be affected by these changes?
• All mortgage lenders that are federally regulated, need to abide by
these new rules. Others affected by these new rules are the people
who are applying for a mortgage with a 20% down payment or higher.
• What is the qualifying requirement?
• The mortgage applicants must qualify for the Bank of Canada’s five-year
benchmark rate, which currently is 4.99%, or +2% (200 basis points
more than the current rate) on the contractual rate, depending on
which one is higher.
• What willthe effects of these new mortgage rules be?
• These new rules set by the OSFI will not only affect the Canadian real
estate market, but also the overall economy of the country. These new
rules are bad news for consumers who have their hearts set on buying
a home for themselves and were leaning towards mortgage options.