New Rules Bring Unexpected Consequences
Thinking of switching your mortgage to another bank? You may be surprised to find that your bank has you in a headlock. The changes to the mortgage lending criteria that came into effect on April 19 have created some wrinkles in the mortgage process that weren’t so apparent at first glance.
If you’re shopping around at other banks for the best rate you are going to have to requalify based on your current credit situation. If you stay with your current bank you’ll find that there’s no need to requalify.
Mortgage broker, Vince Gaetano, defines the new rule as such: “it’s definitely a headlock and not a loophole because a loophole you can get out of”.
If you’re looking for some choice in your mortgage options you are likely to find that the criteria that was good enough to get into the market as little as a month ago may not pass today.
This is going to leave a lot of people tied to their current bank and that’s not necessarily a good thing.
