Mortgage Rule Changes Started This Week!
Ben Schmidt of www.benschmidt.tv a Fredericton NB and Oromocto NB real estate agent video blogs about the new mortgage rule changes.
As of Monday, April 19, three rule changes have taken place, that all people requiring a mortgage or refinancing need to abide by.
1 - When qualifying for a mortgage, you must prove you can afford your mortgage at the 5 year fixed rate. You ultimately don't need to get a 5 year fixed rate. You can get a shorter/longer term, or it can be variable instead of fixed. But you need to show the bank you can afford the 5 year fixed rate.
2 - When purchasing a non-owner occupied property, you need to have 20% for a down payment. No longer will you be able to purchase a rental unit with less than 20%
3 - Refinancing you home - You know can refinance only up to 90% and not 95%
If you have any further questions for a Realtor, give me an email ben.schmidt@me.com