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Mortgage Qualification Rule change – what you need to know
You have likely heard that the Federal Government instituting changes to Canada’s mortgage rules to make it harder to qualify borrowers for insured mortgages.
How will this affect you? If you are putting 20% down or better, it will not affect at all. If however, you are going through CMHC or GEMICO insurance you must qualify at the 5 year government posted rate. This rate is currently 4.64%. This has not changed significantly for TD, we have always qualified customers at the TD 5 year posted rate. (Exception was with a 5 year fixed rate). Now all insured mortgages will be qualified at the Government posted 5 year rate.
We consider this an excellent move; since it falls in line with what TD has been putting into practice for years. It will help ensure that borrowers will continue to be able withstand the possible rate increases in future renewals.
Mortgage Specialist, TD Canada Trust