So far, we haven’t seen any lenders officially announce tighter lending guidelines prior to the government’s April 19 mortgage rule changes. That said, don’t be surprised if some lenders do—once the new qualifying rate is announced.
As we approach April 19, there’s a chance lenders and insurers may start scrutinizing applications for high-ratio refinances, high-ratio rentals, and purchases with only 5% down.
If you have a borderline credit score, a borrowed down payment, or high credit utilization, expect lenders and insurers to look extra closely at your ability to repay and net worth.
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Last modified: April 28, 2014
Its pretty irresponsible of the govt to withhold the most important bit of information for this long.
Maybe the furious lobbying efforts of various interest groups over this rule change are still going on behind the scenes?
How hard is it for them to just verify what most people assume will be the case?
If they use “posted” rates then no one will borrow from a big lender ever again until they change their posted rates to equal their discounted rates.
I bet the new rules are substantially different from what’s been announced by the time April 19th roles around.
I doubt they would set a qualifying rate that gives banks or non-banks an advantage. It will be a level playing field.
Resmor announced effective March 1st, they are using posted rates, and will apply new rules.
We are currently looking into buying a rental property and our banker at Scotiabank has told us they have already switched to requiring 20% down (secured) even though it is not April yet.
BMO has not yet adopted the new rules and will not until April 19.
MiddleWay,
By “secured” do you mean you’re getting a line of credit?
Marc
Hi Marc;
By secured they meant one based on our house equity.