November & December Mortgage News - Important Upcoming Dates

With lots of recent mortgage news, I thought I'd send out some communication with what's been happening in the mortgage world, with the coming dates for your reference.

November 21st - Stress test on all mortgage switches eliminated

• The federal banking regulator (OFSI) has eliminated the stress test on simple switches when moving your mortgage from one lender to another.

• On a switch, most lenders will cover all the legal costs to move the mortgage], so other than a small discharge fee (capped into the new mortgage) the only thing this process costs is your time.

• Note that lenders do not typically cover the penalty to break your current mortgage if you are not at the end of the mortgage term.

• Even though there's no stress test, just remember the new lender will need to verify employment and that the loan debt services.

December 11th - The next Bank of Canada Announcement

• Look for at least a 0.25% decrease, but don't be shocked if we see another 0.50%.

• After a tough couple of years for variable mortgage holders, things are finally looking a bit brighter. As a FYI though, fixed rates continue to be lower than variable rates, and that will continue even after an upcoming rate cut or two.

• If you're a current variable holder thinking about converting to a fixed rate, my thought is the fixed still has a decent amount to go down, and I'd sit tight for now.

December 15th - 30 year amortization available for all first-time home buyers

• Effective Dec 15th, insured mortgage purchases (CMCH) by first-time buyers are allowed  30 year amortization. This is currently only available for buyers with more than 20% down payment.

• While this does tack on an extra 5 years beyond the current 25 year rule, it does provide a lower monthly payment, and slightly increases their buying power.

• While I never like to see my clients pay more interest, if 30 year amortization helps some more young people get into the market, I think it's a positive change.

Credits and thank you to Jim Steffler for this information. If you’re looking for a great mortgage agent, consider reaching out to Jim!

Jim Steffler

Mortgage Agent Level 2

Dominion Lending Centres National Ltd.

TEL: 226-338-5136

EMAIL: jim@jimstefflermortgages.com

https://jimstefflermortgages.com