Mortgages – Insured vs Uninsured
As of January 1st, 2018, Canadian Home Buyers will have to endure stricter guidelines when applying for a mortgage, be it insured or uninsured.
We already have these in place for insured mortgages (those with less than 20% down payment) but now we are going to see this with uninsured mortgages too, and Canadians will have to qualify for a mortgage that is 2 percent higher than that which they are applying for. With a high rate of uninsured mortgages (around 45%) this could potentially rock the market.
But first let’s have a look at what it means to be insured or uninsured.