How do the changes affect you?
In situations of high ratio mortgages home buyers with less than a 20% down payment will have a mortgage qualification based on the Bank of Canada posted rate.
This affects you due to the fact that the Bank of Canada rates are higher than the rates offered by banks and lenders.
How does the changes not affect you?
Essentially, for a low ratio mortgage all remains the same if a buyer has more than a 20% down payment.
An exception to that rule- if the mortgage has a term of 4 years or less and/or is a variable rate mortgage, which is subject to the new Mortgage Qualifying Rate. Otherwise, you will still be able to qualify for mortgages using the contract rate.