Blog by Betsy Carstairs

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new financing rules

I was doing some year end financing & was alerted by the bank's finance advisor as to the impact of the new rules on lending. This advisor relayed stories on  a few clients who had put in offers on properties & when it came time for them to complete were not approved for a mortgage. The end result was that these buyers walked away from their deposits. When I read Christos Gitersos' ( a Vancouver mortgage broker) news letter on this subject I thought it important to share......

A misconception about mortgage financing:

It is a reoccurring but common misconception that you will qualify for a mortgage in the future because you have qualified for a mortgage in the past.

This is not accurate!

Do. Not. Assume. Anything.

Even if your financial situation has remained the same or has improved, securing mortgage financing is more difficult now than it has in recent years.
The latest changes to mortgage qualification by the federal government has left Canadians qualifying 20-25% less. On top of that, guidelines that lenders would use in determining your suitability have been replaced with non-negotiable rules and declarations.