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Blog by Monica Dabrowski | December 5th, 2016


Resulting from recent mortgage rule changes, lenders have experienced higher costs and have since increased their rates. Lenders are now required to use a higher qualifying rate instead of the contract rate for all insured mortgages (less than 20% down payment). As we head into the new year, all lenders including banks have announced new tiered mortgage rates, with most favourable rates to clients paying insurer premiums. This three-tiered approach will allow lenders to blend their increased costs based on each client’s portfolio. The mortgage rate tiers will now be based on insurability, primary vs investment, down payment, and length of amortization. In addition to these recent changes, as of November 30, 2016, insured mortgages with more than 20% down payment must now be qualified under the same guidelines as high ratio mortgages.

With all the mortgage rule changes that took effect this last quarter of the year, it may be difficult to understand how they affect your lending options. Ask us for our recommendation to work alongside top mortgage brokers to keep you up to date with industry changes and get you approved!