Feeling Concerned About The New Mortgage Rules In Canada? Know How To Proceed!

1. Feeling Concerned about the New Mortgage Rules in Canada? Know How to Proceed! In Canada, a limited supply of homes coupled with rising prices has made the government rethink their strategies. You can now find many changes in the mortgage industry. Interesting, there is a new mortgage stress test designed for borrowers that has really affected their ability to find a right mortgage deal. With the new test, you can get a mortgage at 3% only when you show that you are capable of dealing with payments going up to 5%. Studies show that with these new rules in effect, buyers will now be in a position to borrow 20% less as compared to what they could have borrowed had the previous rules been still in effect. While things have certainly become a bit intimidating, you can still take some steps to ensure that you can find a right home loan for you. Here is how to proceed: Do Not Leave Other Debts Hanging In the light of new mortgage rules, you should never try to file your application for a home loan unless you have cleared all your other loans. The stress test is surely going to derail your plans if there are other outstanding loans showing in your report. Understand that any debt you already have will have a direct impact on how much mortgage you can get. So, be sure to check any outstanding loan or unpaid credit card before you decide to apply for a mortgage. Never go ahead without checking the fine print It has never been this important to check the fine print before finalizing your decision to obtain a mortgage from a lender. Do not just fall prey to those fascinating offers created by lenders in the industry. For instance, some would ask you to get preapproved first and then buy a property within 120 days of getting pre-approved to become 'immune' to the effects of the new stress test. Therefore, it is important to pay attention to the complete picture, especially if you are a move-up or repeat buyer interested in buying a bigger home than what you currently have. Do Not Be Afraid of Making Adjustments With new rules now in effect, you should consider working with a right broker and be willing to make certain adjustments to your plans. A good idea would be to delay buying for a while until you can build up a better down payment. If you cannot wait, you may have to stay content with whatever you can afford at the moment, which is likely to be less than what you might have obtained last year. Understand that new mortgage rules have certainly changed the industry to a certain extent, but you can still find ways to find a right mortgage for your home. Just be sure to shop around and do not make a hasty decision when it comes to finalizing a deal! Article Source: http://www.appleheadlines.com/mortgage-rules-in-canada/