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AFTER January 1, 2018 you could lose 20% of your borrowing power!

Posted by on

November 8, 2017

 Taking effect January 1, 2018, the qualifying rate for all conventional (more than 20% down payment or equity) applications will be the greater of;

  • o    The highest contract rate + 2%


  • o    The Bank of Canada benchmark rate (currently 4.99%)


NOTE:  Default insured / high ratio applications will still be qualified using the greater of the contract rate or Bank of Canada benchmark rate.

  •          If a legally binding Purchase and Sale Agreement is dated/signed prior to January 1, 2018, regardless of closing date, the customer will qualify under the old rules.
  •         If the legally binding Purchase and Sale Agreement is dated/signed on or after January 1, 2018, the customer will have to qualify under the new rules.



All preapprovals that have not converted into a live property specific deal before January 1, 2018 will no longer be valid.

  •         Property specific commitments for purchase transactions granted before January 1, 2018 will be honoured based on the old rules regardless of closing date. Any amendments to these applications on or after January 1, 2018 will continue to qualify under the old rules as long as the property and the borrower(s) are the same.
  •         Refinances approved before January 1, 2018 must close within 120 days of the application date to qualify under the old rules. 


As always, if you have questions or concerns, feel free to contact me anytime!

Marla Daniels

Owner, Mortgage Consultant

Mortgage Insight – The Mortgage Centre

Phone       250-733-2201

Toll Free   877-733-2201

Fax            250-733-2205

Toll Fax     877-733-2205

Email        marladaniels@shaw.ca

Website    www.marladaniels.com