I have received some calls from clients worried about how the new mortgage rules coming in on April 19 will affect them.

First let me explain what the changes are. The rule changes only affect government backed insured loans.

Under the new rules, buyers will have to qualify for a 5 year loan, which is at a higher interest rate than a shorter variable or shorter fixed term loan even if they don’t want the longer term. Being that it is at a higher interest rate the qualifications are more difficult to meet. ie your income, credit rating etc will have to be higher.

So the bottom line is if you “just” qualify now for a short term variable rate mortgage you better find a new home before April 19 or you just might not qualify any more.

The best thing to do is check with your financial institution now and see how the rule changes affect you.

This entry was posted on Sunday, March 21st, 2010 at 3:53 pm and is filed under Keith Macdonald's Blog. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.