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NEW MORTGAGE RULES

NEW MORTGAGE RULES

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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.

HERE’S WHAT YOU NEED TO KNOW

  • 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.

HERE’S WHAT YOU NEED TO KNOW

  • 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.
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​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


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


Still Have Questions?

Talk to our Financial Services Officers to see how these changes may affect you.

Still Have Questions?

Talk to our Financial Services Officers to see how these changes may affect you.