CMHC RULES FOR QUALIFYING CLARIFIED
New rules for qualifying on residential mortgages effective April 19th 2010.
1) If a client is taking a 5 yr fixed rate then they can qualify on the contract or Best Rate of 3.69% to 3.89%.
2) If taking anything LESS than a 5 yr fixed, or for all variable rate mortgages, clients will qualify at the 5yr Posted Rate of 5.39% (on the Bank of Canada site which is posted weekly on their website): http://www.bankofcanada.ca/en/rates/interest-look.html. So in other words qualifying for anything less than a 5 yr fixed rate, will effect the qualifying rate by approximately 1.5%.
Deals that go through for a refinance or purchase approved through the system can close after April 19th but pre-approvals that have not gone live will be subject to the new rules after April 19th.
Please call or email your mortgage broker for further questions.
1) If a client is taking a 5 yr fixed rate then they can qualify on the contract or Best Rate of 3.69% to 3.89%.
2) If taking anything LESS than a 5 yr fixed, or for all variable rate mortgages, clients will qualify at the 5yr Posted Rate of 5.39% (on the Bank of Canada site which is posted weekly on their website): http://www.bankofcanada.ca/en/rates/interest-look.html. So in other words qualifying for anything less than a 5 yr fixed rate, will effect the qualifying rate by approximately 1.5%.
Deals that go through for a refinance or purchase approved through the system can close after April 19th but pre-approvals that have not gone live will be subject to the new rules after April 19th.
Please call or email your mortgage broker for further questions.