Game-Changing Mortgage Rules: What You Need to Know Before 2025

?? Mortgage Changes Ahead: What They Mean for You ??

Imagine this: You’ve spent hours deciding which Raptors jersey to buy—carefully picking your favorite player. Two months later, that player gets traded to another team. Frustrating, right?

Well, something similar is happening in the mortgage industry right now. After years of lobbying by brokers, we finally scored a win with the removal of the Stress Test for Straight Switches. This means homeowners can renew their mortgages without having to re-qualify under the Stress Test rules.

But just like that traded Raptors player, the excitement comes with a twist. Starting Q1 2025, a new regulation will significantly limit borrowing power. A Loan-to-Income (LTI) cap will restrict borrowing to 4.5 times your income—a major reduction in how much homebuyers can qualify for.

?? Why Does This Matter?

The new LTI rule is set to impact both homebuyers and homeowners looking to refinance. If you’re planning to move or renew your mortgage in the near future, it’s crucial to understand how these changes could affect you.

?? What’s Next for the Stress Test?

Here’s where it gets interesting: There’s speculation that the Stress Test could be completely eliminated in the next 12 months. Industry experts, including former Scotia Mortgage Authority CEO John Webster, suggest that the LTI cap will replace the Stress Test entirely.

If this happens, it would be a major shift in how mortgage approvals are calculated in Canada.

??? Key Takeaway: Be Proactive!

Whether you’re a Realtor helping clients navigate the market or a homeowner planning your next step, now is the time to stay ahead of these changes. Planning in advance can help you adapt and secure the best possible mortgage solution for your situation.

?? How We Can Help

Don’t leave your mortgage strategy to chance. Reach out to a trusted mortgage broker—like me—for guidance tailored to your specific needs. Together, we’ll make sense of these changes and prepare you for what’s coming.

Stay informed, stay ready, and let’s tackle these changes together. Because when it comes to your financial future, knowledge truly is power. ??

Let’s chat about your mortgage plans today!