New Mortgage Rules

Canada’s New Mortgage Rules and You

Canada’s new mortgage lending rules may have you asking how these changes will impact your decision to buy a new home now or in the future. Whether you’re looking to get into your first home, purchase your next home, or simply renew your existing mortgage, you’ll want to be in the know.

The latest lending rules to hit the Canadian mortgage market are designed to ensure home buyers can still comfortably afford their mortgage payments in the event interest rates increase.

It makes sense and it’s a consideration we’ve always taken here at The Police Credit Union when helping our members secure financing for their home. Affordability isn’t just about the biggest and best house you can afford. It’s about your complete financial picture and the mortgage solution that makes the most sense for you.


If you’re buying a home with more than 20% down, you will be tested using either the Bank of Canada’s 5-year benchmark rate or The Police Credit Union’s current posted mortgage interest rate + 2.00% – whichever is higher.

If you’re buying a home with less than 20% down, you must qualify at the Bank of Canada’s 5-year fixed rate.

If your mortgage is up for renewal and you’re staying with the same financial institution, you will not be affected by the new mortgage rules.

If you’re mortgage is up for renewal and you’re planning on switching lenders, you may be subject to qualifying at the higher stress test rate.

Still unsure of where you fit in? Use this handy chart to determine if you’ll be tested.

First-Time Homebuyer? Yes
Refinance Your Existing Mortgage? Yes
Transfer Your Mortgage Into TPCU? Yes
Sell Your Existing Property and Buy a New Property? Yes
Mortgage is Up for Renewal at TPCU? No

Regardless of your situation you can talk to our Financial Services Officers about how these changes will affect you.

Give us a call at 1.800.561.2557 or visit us in branch today to talk to our specialists.