Getting a mortgage has gotten more complicated, unless you are going through a credit union.
As of January 1, the federal government imposed new mortgage rules to banks, which restricts borrowing by 10 to 20 percent less.
Ron Hedley, CEO of Catalyst Credit Union, explains the reasoning behind this legislation for banks.
“There’s restrictions on financial institutions to exercise due diligence when it comes to stress testing potential homebuyers and that’s really just to put them in a better position going forward,” explained Hedley. “In case the interest rates change, they’re still in a position to afford their house.”
Since credit unions are provincially regulated, they do not have to follow the new guidelines.
