Review your mortgage NOW! Next year may be too late


It’s begun.  The message is starting to sink in.  The new mortgage rulescould eliminate 15% of Canadians from qualifying for a mortgage after January 1st, 2018.  The mad rush has started as mortgage inquiries are up significantly.


  • Anyone that has a mortgage renewal in next 12 to 20 months.
  • Anyone thinking of buying in the next 12 months.
  • Anyone that is needs or is thinking of refinancing their mortgage in the next 12 months.
  • Rental property owners.  Yes, you too.
  • Future retirees with lots of home equity (newsflash..the new rules don’t take into consideration how much equity you have in your home.. your net worth is also irrelevant… it’s all about how much income you earn and declare…)

All of these borrowers will be affected.  If you’re not getting the message, anyone with a mortgage should be getting a review done NOW.  Don’t wait until next year.  You may not qualify for a mortgage.


We are expecting real estate sales to shoot up, temporarily, at least until January 1st.  So long as you enter into a purchase agreement prior to January 1st, you can qualify under today’s current mortgage rules.   Many potential buyers that have been sitting on the fence will jump into the market now, for fear of not being able to qualify next year.    After that, we should expect a slower real estate market based on fewer buyers being able to qualify.  (Rental properties are looking like a good investment given we have to live somewhere.) 

Those fears of not qualifying are legit as we will qualify for 15% less mortgage under these new rules.   And that’s not taking into account any future interest rate hikes.  Mortgage rates were expected to climb in 2018 based on positive economic numbers for Canada.

However, I’m not convinced the economy can continue to grow with a slower real estate market.  Fewer real estate sales means less home related spending.  Fewer appliances, furniture, landscaping, etc.  Real estate sales play a big part in overall economic spending.  It will be interesting to see where the interest rates go in 2018.


I am reaching out to my clients to review their options today.  You may not be affected.  But if you are, there’s still time to take action.  Speak with an experienced Mortgage Broker.   The new rules may or may not affect you.  Best to go through a quick question and answer process to make sure.

Your best interest is my only interest.   I reply to all questions and I welcome your comments.  Like this article?  Share with a friend.

Steve Garganis 416 224 0114

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