Summary of Flaherty’s mortgage changes
Filed Under Main Content · Tagged: Borrowers, Canadians, Debt Service, Department Of Finance, Fixed Mortgage, Fixed Rate Mortgage, Flexibility, Gross Debt, Interest Rates, Mortgage Insurers, Mortgage Payments, Mortgages, Service Ratios, Year Fixed Rate Mortgage
Financial Post- On Tuesday, the Department of Finance announced three changes to the standards governing government-backed mortgages, that come into force April 19. Here are a summary of the changes…
QUALIFYING FOR A FIVE-YEAR RATE
The adjustments to the mortgage framework will require mortgage insurers to ensure that new borrowers qualify for a five-year fixed rate mortgage when calculating the gross debt service and total debt service ratios. The measure is intended to protect Canadians by providing them with additional flexibility to support mortgage payments at higher interest rates in the future… (Summary cont’d)…
