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What are the standard mortgage qualification rules and how do they affect me?

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Here’s one thing you need to know about the mortgage rules.

If you’re a home buyer with an uninsured residential mortgage (for example, most mortgages where the down payment is 20% or more of the property value):

  • The qualifying rate (the rate a lender uses when determining whether you qualify for the mortgage you applied for) is your mortgage rate plus 2%, or the Bank of Canada’s 5-year conventional mortgage interest rate, whichever is higher

If you’re a home buyer with an insured residential mortgage (for example, where the down payment is less than 20% of the property value):

  • The qualifying rate is your mortgage rate, or the Bank of Canada’s 5-year conventional mortgage interest rate, whichever is higher

These rules don’t apply if you renew your existing mortgage with Simplii Financial.

These scenarios can help you understand when the new qualification rules apply:

Scenario

New qualification rules apply to me

Apply for a mortgage 

Yes

Refinance an existing mortgage

Yes

Transfer your mortgage

Yes

Renew your mortgage

Not applicable

For more information, call a Simplii Financial Mortgage Specialist at 1-888-276-3744.

"SIMPLII FINANCIAL" and the SIMPLII FINANCIAL DESIGNS are trademarks of CIBC. "Simplii Financial" is a division of CIBC. Banking services are not available in Quebec.
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