Some major changes in the mortgage rules as announced by the federal government of Canada can make many real estate buyers to keep in abeyance the desire of buying their own abode. According to former rules, buyers with at least 5% price as down payment were subjected to the stress test; but now, this percentage has been increased to the value 20%. These modifications in mortgage policies will pose great difficulty on the home-buyers.
What are the effects of changes in the Canadian Mortgage Policies?
- Stress Test that will be implied on all the new home buyers for the approval of high-ratio mortgages will pose a great challenge on home-buyers with Bad Credit Loans Canada.
- This rule can greatly decrease the number of people being qualified for mortgage.
- Earlier the stress test was employed on the fixed mortgage rates with repayment term of less than 5 years. Therefore, it was easy for people to get personal loans which will now become a daunting task.
- According to the new changes in mortgage rules, the buyer with less than 20% of down payment will be subjected to the stress test. This change of mortgage policy is a de facto which will greatly reduce the population of new buyers.
- These strict rules and policies of the government will make it difficult for the new home buyers to manage for high amount of down payment.
- This change in policy is great disadvantage especially for the ones who are applying for bad credit personal loans Canada.
Under such circumstances, you can rely on leading loans and mortgage providers like Cash Lender. Cash Lender can help you in this situation of changed mortgage policies along with your poor credit score. They offer various types of loans including home equity loans, home improvement loans, mobile home loans as well as medical loans and student loans.
About Cash Lender:
Cash Lender is one of the reputed and renowned loan and mortgage lenders in Canada. You can also acquire bad credit small business loans Canada through Cash Lender at reasonable interest rate.
For more information, please visit www.cash-lender.ca.