If you’ve considered refinancing your house for a renovation, debt consolidation or any other reason, now might be your last chance to qualify.
Earlier this year the Government of British Columbia implemented a new mortgage rule which required borrowers to qualify at 2% above the contract rate.
Before new mortgage rule – Borrowers could qualify at the given contract rate: 3.59%
After new mortgage rule – Borrowers we’re required to qualify at 2% above the given contract rate: 3.59% + 2% = 5.59%
Almost all lenders followed suit and changed their lending guidelines so that borrowers had to abide by the new rule, known as the “stress test” or “B20”.
Up until this point, there were a very small handful of lenders that did not change their lending guidelines and continued allowing clients to qualify at the contract rate. This small pool of lenders has slowly dwindled down and one by one are now requiring clients to qualify under the new mortgage rule.
It has been brought to our attention the last lender that was not qualifying clients under the new “stress test”, will now be implementing the stress test to all borrowers in the new future.
Please call our team as soon as possible to discuss your options as it is unlikely we will receive any warning prior to the implementation of this rule change.