On April 18, 2011, the last of the most recent changes to Canadian mortgage regulations came into affect and the near term result has been a drop off in the number of first time home buyers that have been able to qualify for a mortgage under the new rules.
Here is a more in depth report by the Canadian Real Estate Association recently released … http://www.mortgagebrokernews.ca/news/crea-report-echoes-broker-concerns-about-rule-changes/106724
The report identifies a significant drop in home sales since the rule changes.
This is likely at least partly due to the run up prior to April 18th where 1st time home buyers were applying in mass to try and get qualified before the rule changes took place.
But in the longer term, it will be more difficult under the current regs for new home owners to qualify for their mortgage and the rules are not likely to improve in this regard any time soon.
So for those looking to purchase their first home, a different approach is going to have to be taken to get in a position to qualify.
Basically, individuals are going to have to plan further ahead to get their down payment, credit score, collective debt level, and cash management in order to be in a position to qualify.
This is not necessarily a bad thing, but it’s going to require a bit more work on the part of the mortgage applicant and it may take longer before they are in a position to qualify.
The first step in this journey to get a mortgage under the new regime is to become educated as to what it will take to be qualified and how big a new home investment you’re going to be in a position to make.
One of the best ways to develop a plan to get that first mortgage is to select an experienced mortgage broker who can work with you to help you better understand your credit and financial profile and how they directly impact your ability to secure a mortgage.
Then, with a plan in place, its going to take a bit of work to make the adjustments necessary to get qualified.
Remember that the right mortgage broker is also you coach and is available to you to help develop a plan that will allow you to complete your first home purchase as soon as possible.
If you’ve recently been refused mortgage financing as a first time home buyer, then we suggest that you give us a call so we can go over your situation and work with you to determine a strategy for getting financing in place in the future.