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New Mortgage Rules to impact first time buyers

Posted by Colin Eby, November 10th, 2016

New rules for first time buyers will have a large impact on what they can now approve for.

All mortgage products with less than a 20% down payment will now be subject to the CMHC “Stress test”.

This means that buyers must now qualify for their mortgage at a rate of 4.64%, where as before qualification could be based off of the 5 year fixed rate product of a given lender.

See more at the link below.

 

http://www.theglobeandmail.com/real-estate/four-major-changes-to-canadas-housing-rules/article32223470/

 

 

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