HUGE Mortgage Changes Coming to Canada October 17th, 2016


The Federal Government has announced yet another important mortgage rule change in efforts to cool the housing market by implementing what they call a “stress test”.

In other words qualifying for a mortgage just got a whole lot more difficult. The sky is however NOT falling and is here to help you through this seemingly confusing time of change.

Effective October 17th, 2016 all insured mortgages are required to QUALIFY for their mortgage using the current Bank Of Canada Benchmark rate of 4.64% compared to using the ACTUAL rate that currently ranges from 2.39% – 2.44%. This does NOT mean that your rate will actually change on your new mortgage, but you will need to get approved as if it were.


Anyone that is currently in the market to purchase a home or refinance a mortgage but have not yet made an offer or committed a live mortgage needs to RE-QUALIFY immediately.



Let’s put this new rule into perspective….

A couple with a $100,000 income, no debts and 5% down payment can currently qualify for about a $484,000 home purchase using the current 5 year fixed rate of 2.44%

That same couple trying to qualify after October 17th using the benchmark rate of 4.64% now only qualifies for a $421,456 home.

That is $62,544 less buying power, which as you can imagine changes a lot! We have been receiving calls all day regarding these changes and how they will effect our current pre-approved clients out shopping for homes. If you know of anyone who is currently shopping, refinancing, renovating or looking to move in the coming months, have them call one of our experts at 613-686-6003 or visit us at 471 Elgin Street in Ottawa, ON. (directly across from the Ottawa Police Station)

Now more important than ever is working with mortgage brokers like our amazing team at Whether it a first time home purchase or someone looking to sell their current home, you need to get pre-qualified before listing a house for sale and before making an offer on a new house.


Prepared by: Paul Stevenson / Managing Partner of

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