Will New Mortgage Rules Slow The Toronto Market?

As of October 17, new mortgage qualification rules will come into effect. These new rules will make it more difficult for many homebuyers to qualify for a mortgage by requiring all insured mortgages to be underwritten based on the Bank of Canada’s Mortgage Qualifying Rate (MQR).The MQR was introduced in 2010 in response to lessons learned from the US housing crisis. Since that time, all high ratio (less than 20% down payment) mortgages with variable rates or fixed rates and less than  five year terms have had to qualify based on the MQR. With the new change, however, all high ratio mortgages will have to qualify on this basis.

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Will New Mortgage Rules Slow The Toronto Market?

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