My pre-approval was with TD and I dont want to go with them due to the collateral charge and also the rates are not competitive
I am going to contact them tomorrow to find out more info
I am not worried about the stress test but the amortization change to 25 years
Thanks everyone for sharing your thoughts
ace604 wrote: ↑"This measure will not apply to mortgage loans where, before October 3, 2016: [...] the borrower entered into a legally binding agreement of purchase and sale for the property against which the loan is secured"PaulMeredith wrote: ↑Looks like my original post was not entirely accurate. Here's the link: http://www.fin.gc.ca/n16/data/16-117_2-eng.aspcrucial1 wrote: ↑ Just wondering where is it mentioned that you have up until March 31st before these rules would come into effect? Curious because my pre construction closing is in February next year so this will make a huge difference for me. Also I read about the new laws coming into effect but haven't seen anything in regard to removing the 30 year amortization option, do you have a link with more thorough information I could read?
It's actually March 1st, not the 31st as previously mentioned. The last paragraph under 'mortgage rate stress test':
The announced measure will apply to new mortgage insurance applications received on October 17, 2016 or later. This measure will not apply to mortgage loans where, before October 3, 2016: a mortgage insurance application was received; the lender made a legally binding commitment to make the loan; or the borrower entered into a legally binding agreement of purchase and sale for the property against which the loan is secured. Mortgage loans for which mortgage insurance applications are received after October 2, 2016 and before October 17, 2016 are also not affected by the rule change, provided that the mortgage is funded by March 1, 2017. Homeowners with an existing insured mortgage or those renewing existing insured mortgages are not affected by this measure.
So, as I understand the above, it appears that any application submitted prior to October 3rd... so anyone with a new build home that has an approval already in place should be fine beyond March 1st. For those submitting an application between Oct 3rd and the 17th will have up to March 1st for it to close under the current regulations.
This is all new for us as well, so we're still trying to make sense of it all ourselves and are still waiting on lenders to comment. As it's written, this affects non-bank lenders only, however big banks typically follow suit in these cases.
So ... does this sound like it protects the poster asking about his 2017 completion?
--- 2 Fido 3 gb data plan $0 for 12 months Using with Fongo App