Mortgage Blog

Canada's Mortgage Experts

New Mortgage Rules Mean 21% Less Buying Power

October 24, 2017 | Posted by: Dana Stauber


The Office of the Superintendent of Financial Institution of Canada has just released their new and more restrictive mortgage rules. These rules are scheduled to take effect January 1, 2018. There are a few big changes, but the one that is going to impact the highest number of borrowers is a stress test for mortgages with 20% down or more. Currently most institutions qualify you with your contract rate on mortgages when you put 20% down or more. However, after January 1, 2018 borrowers will need to qualify with the greater of the contract rate plus 2% or the Bank of Canada Benchmark rate.

What does this mean to you?

This will reduce your buying power by up to 21%. If you could qualify today for a property worth $750,000 your new maximum limit would be $592,500. That is a reduction in buying power of just over $158,000.

What else do I need to know?

This will affect refinances and rental purchases. If you are thinking about making any changes to your mortgage in 2018, I suggest you contact me right away, so I can review how these changes will affect you. Currently any applications submitted prior to the rule changes would be under the old guidelines. However, this could change any day.


Questions on your mortgage, or want to compare your mortgage to what is currently available? Please email me


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