What you need to know about the new mortgage rules in Canada effective Jan 1 2018

Wednesday Jun 13th, 2018


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.


Contact Charles Ruocco today at 416 881 8544 to see what your options are!   I am here to help, and aligned with prime Mortgage Specialists!

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