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| Prime Minister Stephen Harper (Photo credit: University of Saskatchewan) |
This is a question I keep hearing since the government has reduced the maximum amortization. The answer is no it won't. If you renew with your current lender then nothing will change.
If you change lending institutions at renewal (called a switch) it's the same contract and all the terms must be honoured by the new lender; although a new lender will have to re-qualify you using the new debt ratios.
If you decide to refinance or take equity out of your home then you are creating a new contract which would then be subject to the new rules.
It's also important to remember that these rules only apply to high ratio mortgages which had less than 20% down payment or equity at origination. The lenders get to choose their own policies for conventional mortgages.
Questions about renewing or switching - call me. I'm never too busy to talk real estate!
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