Big Changes to Mortgage Rules!!

Big changes are coming to the mortgage landscape, and it may just be what you're looking for!

Starting November 21st, the Office of the Superintendent of Financial Institutions (OSFI) is eliminating the Stress Test for uninsured mortgage switches.

As a reminder, the stress test was a rule put in for qualification that you had to qualify at 2% above your contract rate (or the benchmark rate - whatever was higher). As an example, if you had a 5% contact rate, you would have to qualify at least at 7%.

The new rules mean that, at renewal, if you want to switch your mortgage to another lender, you won't have to qualify with the stress test. This means, if your rate is 5%, you just need to qualify at 5%!

How can this benefit you?

1) Freedom to shop around
2) Potential Savings on interest rates
3) Increased competition from lenders
4) Easier qualification and less stress for you

The majority of mortgages will be renewing in the next 3 years, so this can be a huge sigh of relief for borrowers.

Hopefully, we can completely do away with all stress tests as a whole, in time, but this is a great step in the right direction for borrowers.

Mortgage rates have also been gradually coming down as Bank of Canada cuts it's rates. Here are Today's Rates:

For Purchase:

3 year Fixed - as low as 4.39%
4 year Fixed - as low as 4.29%
5 year Fixed - as low as 4.14%
3 year Variable - as low as Prime - 0.85%
5 year Variable - as low as Prime - 1.15%
** Conditions Apply **
 

For Refinance:
 

3 year Fixed - as low as 4.59%
4 year Fixed - as low as 4.79%
5 year Fixed - as low as 4.44%
3 year Variable - as low as Prime - 0.35%
5 year Variable - as low as Prime - 0.80%
** Conditions Apply **

 

The expectations are that there will be more rate cuts for the year leading into 2025, and continued cuts in 2025, which should relieve a lot of pressures on borrowers. With rates changing weekly, it is important to have an experienced and knowledgeable Mortgage team on your side!

To discuss your options and see what type of rates you can get, get in touch with us.