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10 Nov

What mortgage rule changes mean for Nova Scotians.

Mortgage Rules

Posted by: Jim DeCoste

In October, OSFI (Office of the Superintendent of Financial Institutions) announced that effective January 1, 2018 the new Residential Mortgage Underwriting Practices and Procedures (Guidelines B-20) will be applied to all Federally Regulated Lenders. Note that this currently does not apply to Provincially Regulated Lenders (Credit Unions) but it is possible they will abide by and follow these guidelines when they are placed in to effect on January 1, 2018.

Legislators are trying to cool off a hot housing market in large cities in Canada but these changes will have significant unintended consequences for individuals and families in Atlantic Canada.

Effective Jan 1, uninsured purchases and refinances are going to have to qualify at the larger of prime or contract rate + 2%. Some people will no longer qualify for refinancing. We have multiple deals we are completing right now that would not qualify in 2 months. People are going to lose access to their home equity, which is going to make family finances in Nova Scotia worse, not better.

If you are considering a purchase or refinance, NOW is the time to talk to a mortgage professional. Call or come see us at Dominion Lending.