What you need to know about the new mortgage rules in Canada effective Jan 1 2018
Wednesday Jun 13th, 2018Share
What you need to know about the new mortgage rules in Canada
Whether you’re a buying a home or refinancing, here are the basics of what you need to know about the new mortgage rules:
- New rules take effect January 1, 2018: Check with your TD Mobile Mortgage Specialist on how this can affect your mortgage loan if you’ve applied before January 1, 2018.
- Home buyers with a down payment of 20% or more will now be subject to stricter qualifying criteria (also known as a “stress test”) that would determine whether a homebuyer would be able to afford their principal and interest payments should interest rates increase. This stress test would use either the 5-year benchmark rate published by the Bank of Canada or the customer’s mortgage interest rate plus 2%, whichever is the higher.
- New rules don’t apply if you’re renewing your TD Mortgage: The new rules only apply to new mortgage loan agreements. They do not apply when renewing your existing mortgage loan with TD.
- Understand what type of mortgage best fits your means: We can help make sure you are prepared with the knowledge you need to make your mortgage decision – before and after the new rules take effect. Learn more.
- Are you ready? : Follow our quick infographic quiz to see how the new mortgage rules might affect you. View the infographic.