1) Starting October 17th, 2016 – If you are looking to purchase a property with less than a 20% down payment, you will now need to qualify at the Canadian Benchmark rate which is currently 4.64%. The biggest affect this rule will have is the amount of mortgage you could qualify for., therefore reducing your purchasing power.

2) Starting November 30th, 2016 – If you would like to obtain a mortgage with a Canadian lender that currently back insures their mortgages (called portfolio insurance) you will be required to qualify under the same rules as a high ratio mortgage (meaning the same qualifications as someone who is putting less than 20% down regardless of how much of a down payment you have).
a. For these particulars lenders there will be no more 30 year amortizations.
b. You will be required to qualify at the Canadian Benchmark rate, currently 4.64% for any type of rate or term.
c) You will have a maximum purchase price of 1 million.
d) You will no longer be able to use these lenders for rental properties.

3) Capital Gains Exemption. The government will now require you to report on your income tax returns the sale of a property for which you claim to be your primary residence and are applying for the principal residence exemption. In order to qualify for the exemption, you, your spouse or any of your children must have lived in the home at some time during the year for which the principal residence designation is made. More specifics on this rule to come out later.

If you plan on purchasing a new home, refinancing or renewing your mortgage in the immediate future, please pay attention to these new rules revealed by the government recently. There is no better time than to get in touch with a mortgage professional – like myself – who can guide you through these changes.

Shari Letsos
Mortgage Professional
Cell: 604-723-7721
Sletsos@dominionlending.ca
Dominion Lending Centres Mountain View
Website: www.ShariLetsos.ca