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How the B20 changes will impact your mortgage qualification

Blog by Tridac Mortgage | October 20th, 2017

Greek philosopher Heraclitus mused that the only constant is change when he observed the cosmos. Despite all the hype I guess Canadian real estate hasn't escaped the pull of our universe yet!

As you've probably heard by now the Office of the Superintendent of Financial Institutions (OSFI) has introduced "the cherry on top" of a long series of mortgage rule tweaks

The bottom line for you is that in the future you will qualify for less mortgage money. How much less? I developed the table below to help you understand the impact:
Mortgage Math caused by B20 Changes.png

The answer is a resounding no. In fact the stress test was being applied to all 5 year variable rate mortgages and terms shorter than 5 years for fixed rates already.

However there is one exception...

If you feel maxed out and financially stretched at the moment and intend to consolidate outside debts or renovation costs into the mortgage then now may be the window of opportunity to act.

There will be some borrowers marginalized by this change so it is imperative to take a look at your options before the January 1st deadline. 

If you have any questions or concerns about your mortgage financing please get in touch.