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Calgary Real Estate Blog

Government of Canada Announces New Mortgage Qualifying Rules

Government of Canada Announces New Guidelines Affecting Mortgage Qualifying Guidelines 

The Government of Canada has announced some changes to the guidelines affecting mortgage insurance that can have a significant impact on homebuyers and how much they can borrow for a mortgage loan. With these changes going into effect on October 17th, those who are thinking about purchasing a home may want to get the homebuying process started before the new changes go into effect if they hope to increase the housing options that are available to them for purchase. 

Understanding Mortgage Insurance 

According to Canadian federal statutes, mortgage lenders are required to purchase mortgage default insurance for homebuyers who do not make a down payment that is at least 20 percent of the property purchase price. Also referred to as high loan-to-value or high-ratio insurance, this coverage protects the lender if the homebuyer defaults on the loan. Providing...