Refinance rules will be tightened to make it more difficult to qualify at the end of this month. Starting November 30th, lenders will qualify all new applications with a 25 year amortization and the 5 year posted rate by the Bank of Canada of 4.64%.
Therefore not only will this affect 25% of new refinance applicants that may not qualify according to the new regulations, but many lenders are ceasing to finance rental properties, refinances and purchases over 1 million dollars. The change comes after Canada Mortgage and Housing Corporation (CMHC) has decided not to insure these types of transactions. As fewer lenders offer mortgages for such transactions, we can expect fewer choices and higher rates.
Our advise is to refinance before these changes take place on November 30th. For more information, contact us at email@example.com today.