New Mortgage Rules Set Canada’s top banking regulator has published the final version of its new mortgage rules, which include a requirement to “stress test” borrowers with uninsured loans to ensure they could withstand higher interest rates. The new guidelines for the mortgage industry will come into affect on January 1, 2018.
Among the major new rules is a requirement to stress test uninsured borrowers. Previously, only insured borrowers had to undergo such a test. By law, borrowers with a down payment of under 20 per cent for a home must purchase mortgage insurance. Borrowers pay an insurance premium, but the beneficiary is actually the lender, because the insurance protects the loan giver in the event the borrower defaults on the loan.
The stress test is designed to simulate a borrower’s financial situation by assuming they would have to pay back the loan at the posted average—not whatever deal they were able to negotiate. So under OSFI’s new rules, borrowers would be stress tested at either the five-year average posted rate, or two per cent higher than their actual mortgage rate—whichever one is higher.
On a $500,000 home with a $50,000 down payment, the CMHC says a borrower would be charged an extra $13,950 to insure the $450,000 mortgage.
In addition to the stress test, the new rules would require lenders to have more scrutiny around the loan-to-value ratio of the loans they give out, to ensure they are not giving out mortgages that are too large compared to the underlying value of the home.
There’s also new limitations on so-called co-lending or bundled mortgages that aim to ensure lenders don’t flout rules designed to limit how much they can lend. – Courtesy of CBC News
How to Create a Relaxing Bathroom With toiletries scattered across the counter and towels tossed in the corner, your bathroom doesn’t feel like a place to get clean. But when your bathroom is orderly, your bathroom can become a place of both cleanliness and relaxation; see how with these three tips.
Utilize Your Storage Space Close your eyes and picture a relaxing spa. Chances are, this space doesn’t have makeup or cleaning products cluttering the counter space. Rather, relaxing spaces are clean and open. To make your bathroom feel more soothing, be sure to utilize all your storage space.
Toss Out Old Toiletries and Makeup Using old makeup, lotion, medicines, and other toiletries can be both unsafe and ineffective. As well, these items can take up a lot of space in your cabinets and drawers! Go through all your loose items to see what you should toss. This will clear up space, and make it easier for you to find your dental floss in the morning.
Make Relaxation Simple By the time you finally find and reach your bubble bath, wash cloth, and face mask in a disorganized bathroom, the mood for a spa day has come and gone. But when you can find and access these items easily, relaxation can happen at any time—whether it’s before bed, early in the morning, or even during your lunch break. Create relaxation zones to simplify this process. For example, you could keep candles and aromatherapy oils in one drawer. In another, you could store face masks and lotions.. – ShelfGenie
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