The new year is a time of change and for this year that includes the 2018 mortgage changes in Canada.

In the past, if you had a down payment of 20% or more, you only had to prove that you could make your contractual mortgage rate. With the 2018 mortgage changes in Canada, though, no matter your down payment, banks have to assess your mortgage application based on the higher of:

  • the Bank of Canada’s five-year benchmark rate,
  • or your contractual mortgage rate plus 2%.


How the 2018 mortgage changes in Canada are affecting homebuyers

The 2018 mortgage changes in Canada mean it will now be more difficult for homebuyers to get a mortgage from a bank. In fact, over 100,000 people who were approved for mortgages last year would not be under the new rules.

Even those who could still be approved for mortgages may be forced to apply for lower ones, perhaps forcing them to compromise to smaller properties or lose out on their dream homes or investment properties.    


How an alternative brokerage can help you in light of the 2018 mortgage changes in Canada

If you are one of the many people who does not want to lose out on buying a home – or an investment property – it may be time to look at an alternative brokerage, such as Freedom Capital.

As alternative brokerages are not bound by the 2018 mortgage changes in Canada, we are able to assess your mortgage application based on a variety of criteria. This allows us to work with your unique situation. As the only 100% alternative brokerage in BC, we work differently than the banks – unlike traditional banks, we do not base your approval on income, job stability or your credit rating. Instead, our applications are based on your equity.


That’s why we call ourselves “common sense lenders”

Therefore, you can be approved for a mortgage you might have been turned down for by a bank. You can also get your mortgage approved faster, getting you into your home or investment property as soon as possible.

Curious about how our alternative brokerage can help? We have all the information you need here. If you have already been hit with the new 2018 mortgage changes in Canada and are ready to work with an alternative brokerage, start your mortgage application or get in touch with us today.