New Rule #1: Increased qualifying rates on fixed terms less than five years and variable mortgages.

Effective April 19, all high-ratio insured mortgages that have a variable rate or a fixed term under five years will be qualified using the: the chartered bank 5-year posted rate (5.39% today), or

There’s been a lot of speculation surrounding this change. The new qualifying rate has been a big question mark ever since the Finance Department announced its new mortgage rules on February 16.

The posted qualifying rate will be published by the Bank of Canada each Monday at approximately 12:01am Eastern Time.

Currently lenders use qualifying rates that range from discounted 3-year fixed rates (like 3.29% today) to posted 5-year fixed rates (5.39% today).

Going forward, mortgages with terms of five years or more will use the contract interest rate.  This is key because it suggests lenders will still be able to qualify insured 5-year fixed borrowers using heavily discounted contract rates (e.g.,  3.75% instead of 5.39%, as of today).

New Rule #2: 5% increase in the down payment requirement when refinancing.  (90% LTV will be the new maximum for refinances. Currently it’s 95%.)

New Rule #3: 15% increase in the down payment requirement for rental property financing. (20% will be the minimum down payment for insured rental financing. Currently it’s 5%.)

These new rules are currently scheduled to take effect April 19.

I welcome your comments below : )

Mark Fidgett | 604-273-2002

“Your Personal Mortgage Consultant….For Life!”

PS – Please Don’t Keep Me a Secret
A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072
W http://www.notapennydown.com


An independent Mortgage Specialist associated with the Verico Mortgage Network.