Here’s last word on the new mortgage rules coming down the pike on March 18th.

I’m not going to rehash the rules as I blogged about them here, but I will answer the top two questions I’ve been receiving of late.

Question #1: What happens if I enter into a contract to purchase a property and the completion falls after the deadline?

Answer: If you have a FIRM Contract of Purchase and Sale in place, on or before March 17th, then the current 35 year amortization will still apply, even if your closing falls after the 18th.

Question #2: What happens after March 18th when it comes to renewing my mortgage that currently has an amortization that’s longer than the new 30 year max?

Answer: As long as the mortgage doesn’t change, you can simply renew your mortgage and everything stays the same. If the mortgage changes in any way, such as a refinance, then the new rules will apply. i.e. 30 year amortization.

Mark Fidgett
Vancouver Mortgage Broker