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January Update: Recent guideline and regulation changes

General Scott Gingles 19 Jan




Welcome to the January issue of my monthly newsletter!


Real estate and mortgages dominated the headlines in 2016, and we will see much of the same in the year to come. The BoC has made significant changes to the rules and regulations in an effort to temper borrowing. Some of these changes include:

  Qualifying all high ratio mortgages at the benchmark (4.64%)​

New regulations have forced lenders to provide multiple tiered pricing (lenders now issue different rates for extended amortizations, rental properties, and high ratio mortgages)

Additional downpayment required for purchases > $500k

As recently as this week there have been two significant announcements. CMHC will be increasing default mortgage insurance premiums effective March 17, 2017. And secondly, although employment and inflation figures are strong, the BoC held the key overnight rate steady (no change to the Prime lending rate). This was somewhat expected as we wait to see what impact Trump and impending policy changes will have on our economy.

The remainder of this month’s edition looks at the new BC government down payment program, November’s home sales numbers, and what that home you bought in 2016 means at tax time. Please contact me directly with any questions or feedback.

Thanks you again for your continued support and referrals!

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