Mortgage Rule Changes January 1st 2018

I have had many inquiries to understand the pending rules and how they affect your clients.  Here are some more details to help you navigate before January 1st:

Pre Approvals:
Any pre approval committed prior to January 1st will remain valid for 120 days from the date of the original approval.  

Should a pre approval that was committed in 2017 turn into a real deal, the old rules apply even if the closing date of the new purchase is greater than the expiry date of the pre approval, but no greater than 120 days from the date of the commitment for the real deal.

Example: 
A pre approval committed prior to January 1st expires March 15, 2018. The borrowers purchase a property closing May 1, 2018.  If the real deal is committed on/before March 15th, we still qualify the deal using the old qualifying rules.  The rate is no longer protected as the closing is beyond the expiry date of the pre approval, however the old rules still apply for qualification, as long as the deal closes within 120 days.  The rate will adjust to the rate at time of purchase as it closes outside of the march 15th pre-approval.

 

If you have any questions, or need a pre-approval or ensure your clients who are looking are protected, call me!

 

 

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