This letter will also appear as a full page ad in the Oct. 3 Globe and Mail.

Dear Prime Minister Justin Trudeau and Finance Minster Bill Morneau;

One year ago, your government introduced new mortgage rules that put the dream of home ownership out of reach for many Canadians. Although well intended, the changes have reduced the average Canadian family’s purchasing power by upwards of 20 per cent, and have had the unintended consequence of making housing less affordable for Canadians. Instead, Canadians who were once able to purchase or re-finance their home are being shut out of the market or forced to pay more interest to traditional lenders as competition in our sector declines.
The new stress test that requires all new mortgages to qualify at the greater of either the Bank of Canada benchmark rate or the contract rate offered, means that Canadians who previously could reasonably afford a mortgage payment at the standard rates no longer qualify. Additionally, changes to portfolio insurance requirements have resulted in some monoline lenders being unable to insure mortgages, thus reducing overall competition, which hurts consumers, regardless of what solution they use for their homes.
Canadians who are now unable to fulfill their dream of owning a home have been telling us their stories and we’ve been listening. We’ve documented their stories and we think it’s important for you to see them. We’ve posted these stories at www.NewRulesHurt.ca and are sending every Member of Parliament a printed copy so they can read firsthand how the new mortgage rules have impacted the lives of hard working individuals and families in their constituencies. Please take the time to read these stories and seriously consider changing mortgage rules to make them fair and equitable for all Canadians trying to purchase, or keep their home.

A lot of people get into hot water when they assume that because they’ve qualified for a mortgage in the past, they will qualify for a mortgage in the future.

This article has one point to make and it’s this:

Don’t assume anything when dealing with mortgage financing!

And if that’s all you take away, that’s enough!

Just because you’ve qualified for a mortgage in the past, doesn’t mean you will qualify for a mortgage in the future, even if your financial situation has remained the same or gotten better. The truth is, things have changed over the last year, and securing mortgage financing is more difficult now than it has been in recent memory.
The latest changes to mortgage qualification by the federal government has left Canadians qualifying for about 20-25% less. On top of that, a lot of the “common sense” guidelines that lenders would use in determining your suitability have been replaced with non-negotiable hard and fast rules.
As a mortgage professional who arranges financing for clients everyday, I keep up to date with the latest changes in the mortgage world, understand lender products, and have my fingers on the pulse of what is going on.
From experience, I can tell you that having a plan is crucial to a successful mortgage application. Making assumptions about your qualification, or just “winging it” is a recipe for disaster.
If you are thinking about buying a property, contact a Dominion Lending Centres mortgage specialist who would love to talk with you about all your options, and help you put together a plan.