Prepare for more tightening
The Government is expecting to once again tighten mortgage lending rules with one of the biggest changes yet. The Office of the Superintendent of Financial Institutions plans to mandate that banks will have to qualify borrowers using a new stress test. Borrowers will have to qualify based on a rate two hundred basis points higher than their contracted rate. A similar change occurred last year but it only applied to ‘insured mortgages’ and it negatively affected millions of people. On top of this, fixed and variable mortgage rates have increased. It will likely be very difficult for many borrowers to access prime rates and/or borrow money in the near future. I cannot stress enough how important it is for customers to review their debt position and act now to refinance or purchase before it’s too late. Even if you don’t need money, then consider setting up a line of credit for when you do need money.
Current rates:
- Best 5 year fixed 3.24% (non-insured)
- Best 5 year fixed 3.24% (insured)
- Best Variable rate at 2.60%
- Best Line of Credit rate at 3.50%
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Coquitlam Condo located near Douglas College, skytrain and Coquitlam center.