under 5 years and VARIABLE mortgages at discounted contract rate. There was also NO LIMIT for your GROSS DEBT SERVICING (GDS) if your credit was strong enough. Relaxed lending guidelines when debt servicing secured and unsecured lines of credits and heating costs for non subject and subject properties.
Sure the new mortgage rules from our Federal Government on October 17th can be a bit confusing, here are five tips to help you with your mortgage while at the same time, reducing your stress.
1. Review your Credit File:
Good credit is your ticket to informed borrowing and purchasing, great rates and, most important, approval.
Don’t be vulnerable. Understand how a good credit score happens, and how best to manage credit so that you can use it to your advantage.
Make sure all your information is true, complete and up-to-date. If there are discrepancies deal with them before you start the buying process.
If you are actively looking for a place, and are buying with less than 20% down payment, you need to receive an approval ( commitment ) before October 17, 2016 in order to qualify under the current rules:
"Mortgage loans for which mortgage insurance applications are received after October 2, 2016 and before October 17, 2016 are also not affected by the rule change, provided that the mortgage is funded by March 1, 2017. Homeowners with an existing insured mortgage or those renewing existing insured mortgages are not affected by this measure."
Below is a more detailed explanation and insights on the new changes from Sherry Cooper, our Chief Economist at Dominion Lending Centres...
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