{"id":17240,"date":"2023-01-16T01:19:57","date_gmt":"2023-01-16T01:19:57","guid":{"rendered":"https:\/\/hypotheques.ca\/blogue\/changement-des-regles-hypothecaires-pour-les-prets-conventionnels-quels-impacts-2\/"},"modified":"2023-07-18T19:40:56","modified_gmt":"2023-07-18T19:40:56","slug":"change-in-mortgage-rules-for-conventional-loans-what-are-the-impacts","status":"publish","type":"post","link":"https:\/\/hypotheques.ca\/en\/blog\/change-in-mortgage-rules-for-conventional-loans-what-are-the-impacts\/","title":{"rendered":"Change in mortgage rules for conventional loans, what are the impacts?"},"content":{"rendered":"<p id=\"\">The\u00a0<a id=\"\" href=\"https:\/\/www.osfi-bsif.gc.ca\/Fra\/Pages\/default.aspx\" target=\"_blank\" rel=\"noopener\">Office of the Superintendent of Financial Institutions<\/a>\u00a0(OSFI) has announced a\u00a0<strong id=\"\">change in mortgage rules<\/strong>. Last week, it announced that as of June 1, the\u00a0<strong id=\"\">qualification rate would increase from 4.79% to 5.25%<\/strong>\u00a0for all mortgages.\u200d<\/p>\n<p id=\"\">The real estate market is in turmoil. In this context, will this tightening have the effect of slowing the market? The increase in the qualification rate will impact everyone, and reduce the borrowing capacity for all applications.<\/p>\n<h2 id=\"\">Changing mortgage rules: what is the qualification rate for?<\/h2>\n<p id=\"\">The qualifying rate does not determine the\u00a0interest rate. This element of the\u00a0<strong id=\"\">mortgage rules<\/strong>\u00a0consists of a safety margin in case rates increase.<\/p>\n<p id=\"\">This measure has been in place for 5 years, the principle is simple. When you are granted a mortgage loan, a rate is simulated (the qualifying rate) as if the\u00a0interest rate\u00a0were higher than the one you are granted. This ensures that you will still be able to repay the loan if the rates start to rise.<\/p>\n<p id=\"\">The change that comes into effect on June 1 affects all uninsured mortgages also called conventional, the qualification rate increases from 4.79% to 5.25%. This<strong id=\"\">\u00a0reduces the borrowing capacity<\/strong>.<\/p>\n<h3 id=\"\">Who is concerned?<\/h3>\n<p id=\"\">Those considering a\u00a0<a id=\"\" href=\"https:\/\/hypotheques.ca\/en\/blogue\/rehypothequer-sa-maison\"><strong id=\"\">mortgage refinancing<\/strong><\/a>A\u00a0<strong id=\"\">property purchase,<\/strong>\u00a0regardless of the down payment (insured or not).<\/p>\n<h3 id=\"\">Impact of changes in mortgage rules<\/h3>\n<p id=\"\">The impact of the change in the qualification rate reduces the borrowing capacity by about 4.4%.<\/p>\n<p id=\"\">Homeowners who wish to\u00a0refinance\u00a0in order to access a home equity line of credit are not impacted. In fact, the qualifying rate is already higher than 5.25%.<\/p>\n<p id=\"\">We believe that tightening announced by OSFI will not stop the overbidding on homes for sale, but it may dampen the spirits of those with renovation projects, already cooled by increases in material prices.<br \/>\n\u200d<br \/>\nOur brokers are available to help you evaluate your borrowing capacity, or with any\u00a0refinancing\u00a0requests.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The real estate market is in turmoil. In this context, will this tightening have the effect of slowing the market? The increase in the qualification rate will impact everyone, and reduce the borrowing capacity for all applications<\/p>\n","protected":false},"author":4,"featured_media":16216,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[282],"tags":[],"class_list":["post-17240","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economic-news","category-282","description-off"],"acf":[],"_links":{"self":[{"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/posts\/17240","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/comments?post=17240"}],"version-history":[{"count":2,"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/posts\/17240\/revisions"}],"predecessor-version":[{"id":17842,"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/posts\/17240\/revisions\/17842"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/media\/16216"}],"wp:attachment":[{"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/media?parent=17240"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/categories?post=17240"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hypotheques.ca\/en\/wp-json\/wp\/v2\/tags?post=17240"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}