Stricter Rules

On December 31st new and stricter mortgage lending rules are coming into play. CMHC (Canadian Mortgage and Housing Corporation) will be instating a few new rules, some of which will have an impact on new home buyers. Two notable changes are as follows. All payments on unsecured loans held by an applicant will be calculated as 3% of the outstanding balance. That is a big deal for interest only debt holders. Also, if a guarantor on an application does not live in the home, we cannot use their income. This means that if mom or dad were willing to co-sign for their kids, after December 31st their income will not be eligible for use on the application. If you are a new home buyer and are wishing to buy a home, act now before the new rules apply to you!