With the new mortgage qualification rules coming into effect January 1, 2018, we’ve summarized how they’ll be implemented below:
If a legally binding Purchase and Sale Agreement is dated/signed prior to January 1, 2018, regardless of closing date, you will qualify under the old rules. If the legally binding Purchase and Sale Agreement is dated/signed on or after January 1, 2018, you will have to qualify under the new rules. For presale purchases dated before the end of the year, any amendments to these applications on or after January 1, 2018 will continue to qualify under the old rules as long as the property and the borrower(s) are the same
All per-approvals that have not converted into a live property specific deal before January 1, 2018 will be required to qualify under the new rules.
Refinances approved before January 1, 2018 must close within 120 days of the application date to qualify under the old rules.
Even though these rules don’t come into effect until January 1st, there are some lenders that are implementing these rules 1 -2 weeks prior to ensure they have enough time to process files before the deadline. If you are considering a purchase, refinance or early renewal, please give us a call or email ASAP to discuss further.
Have a great day!
Cindy, Mike and the Coastal Mortgages’ / BrokerSmart Real Estate Services Team