New Mortgage Rules in Jan 1st 2018 - Some Useful Information

As has been announced in the news media, mortgage borrowers with more than 20% equity or down payment will have their borrowing power reduced by at least 20% when the govt's new rules take effect on Jan 1st. As we head into the new year, here are some points to bear in mind regarding this:

1. Purchase contracts dated prior to January 1, 2018 may be approved using the old qualifying rules regardless of when you eventually apply for your mortgage

2. Any currently approved mortgage requests with material changes made after December 31, 2017 will result in the application being adjudicated according to new qualifying rules. Examples include a change of property, addition/removal of applicants etc

3. Pre approvals on applications qualified under the old rules cannot be extended beyond the original (usually) 120 day period.