With the new mortgage rules coming into effect at the start of January 2018, it is imperative that the planning for the next year should be done in advance.
The new mortgage rules require the minimum qualifying rate for uninsured mortgages to be the greater of the five-year benchmark rate published by the Bank of Canada (presently 4.89%) or 200 basis points above the mortgage holder’s contractual mortgage rate. “The main effect will be felt by first-time buyers,” says James Laird, co-founder of Ratehub.ca. “No matter how much money they put down as a down payment, they will have to pass the stress test.”
In case you are planning to buy home for the first time in 2018, please discuss with us at Peel CPA Professional Corporation. Alternatively if you plan to sell the existing home and buying a bigger home,discuss with us at Peel CPA Professional Corporation.
The above planning process is very important for self employed businessmen.
