5 Year Fixed 3.34%

5 Year Variable 2.70%

CTV Morning Live: Mortgage Minute - November 14

CTV Morning Live: Mortgage Minute - November 14

Date Posted: November 15, 2017

On this episode of CTV Morning Live’s Mortgage Minute, Frank Napolitano joins host Henry Burris discusses the Stress Test which began last year with high ratio mortgages and the new regulations coming into effect January 1, 2018.

Frank explains that the regulatory changes involve the qualifying mortgage payment which is based on the new qualifying rate requirements for purchases and refinances- renewals are not affected by the new regulations. He also reminds viewers that the actual mortgage payment will still be calculated on your actual mortgage rate.

Henry and Frank also touch on the fact that if you enter into a Purchase and Sales Agreement to buy a home before December 31st, 2017 and you are putting 20% down payment or more, you will still be able to qualify on your contract rate even if you are closing date is in 2018. However, it is important to have a commitment issued by a lender prior to the December deadline. So if you have an accepted offer to buy a home, ensure you have obtained a commitment from a lender as soon as possible.

This also applies to people purchasing new build homes that won’t be closing until next year. It is recommended that you still obtain a commitment now and then, once closer to your closing date, negotiate the rate.

There has been no definitive response as to when the lender community will begin to adopt the new rules in advance of January 1, 2018 but they do have the ability to put these guidelines into place at anytime. Working with a Mortgage Broker to not only understand the implications of these new regulations but to also ensure any financing requirements are in place sooner rather than later is an important decision to consider.

Speaking with a Mortgage Broker can help determine your timelines and will help by discussing your particular scenario before the new changes come into effect.

Click here to watch the full episode on CTV Morning Live.