Changes to Refinance Rules Coming

Have you been thinking about a refinance?

Restrictive federal changes are coming into effect soon.

There has been a lot of buzz in the news lately about a number of new mortgage rules coming into effect — the federal government has chosen to move several variables, all at the same time. How will these changes affect you? If you're considering a refinance, you may want to apply soon, for three reasons:

1. The new qualifying rate is moving up, which means your borrowing capacity will be reduced by nearly 25%.
2. Many lenders have already started to increase rates on refinances. Expect to see a 0.15% premium on refinances in the coming weeks.
3. Very soon, the ability to choose a 30-year amortization, which is currently a very popular choice for many Canadians home buyers, will be limited or eliminated altogether.

Read more: So what can you afford with the new mortgage rules?

Refinance now, to access more.

Any one of these changes on its own would be considered a financial deterrent, but when you combine all three — it may mean a significant impact on your mortgage loan or home equity decisions.

So, if you're thinking about refinancing your home to consolidate debt, or to access your home's equity for needed renovations or investment purposes, now's the time, before these change come into effect. You'll need to get your application in before November 29, 2016. All deals must fund by April 30, 2017.

For more information, please contact one of our highly trained, no-commission True North Mortgage brokers today. We're here to help with great advice for a better mortgage experience.