Expect tougher mortgage rules by November

Home buyers should expect tougher mortgage rules to kick in as early as November 1 of this year.

In an announcement released Friday by the nation’s financial regulator, banks and lenders that offer mortgage financing will face stricter regulations and this will translate into tougher lending rules for home buyers.

Under the proposed new rules, OSFI will demand that banks increase how much capital they hold to cover mortgage currently in the market.

Banks and mortgage lenders will pass down the extra costs of these stricter regulations to the end user.

This is done by either increasing mortgage rates or implementing tougher lending requirements for those applying for a mortgage.

For the average Canadian home buyer then,

this could mean that as early as November, it will either be:

→ harder to get a mortgage

→ mortgage rates will start to rise (even slightly)

→ or you won’t qualify for as large a mortgage as you would’ve prior to these new rules.

Talk to your mortgage broker....... its about time!