Your chosen mortgage broker will be in charge of helping you find the best financing options including the lowest market rates. Aside from this, the broker will also assist you in negotiating with the lending facility, applying for financing or refinancing, and even help with payment processing.
In terms of refinancing, the qualifying rate has changed and not in the borrower’s favor. As the qualifying rate has increased, your ability to borrow money can go down by as much as 25%.
Also, lenders are also working to increase refinancing rates. With the new regulations in place, refinancing rates may increase by as much as 0.15%. This is a move to discourage people from opting for refinancing allowing lenders to get their money quicker or at least get more for waiting longer to get paid.
Also, amortization which normally spanned to 30 years will be no more. Now the maximum length is only 25 years despite the former being the chosen option by most Canadians.
But despite these changes, the government still made an effort to help Canadians pay off their mortgages amidst rising rates.