As standards are continuously changing and upgrading, many other aspects are affected of these changes that have to be done in order to keep with the pace and demand of everyone.
This particular change is also the same when you look into the real estate world, and in Canada, there is a newly implemented change of rules in reference to mortgage interest rate that is affecting the industry. For you to understand such particular change in reference to the new mortgage rules and to see if this will have an impact for you, read through this info.
The new rule in the mortgage in Canada has something to do with the interest rate for those who do not have an insured mortgage, meaning those who do not have a deposit available in getting a mortgage, as you have to qualify for the 3 percent mortgage rate, plus another one at at a 5 percent rate. Alongside with those two rates, another requirement is to also qualify for the Bank of Canada benchmark rate of 4.55 percent and these changes affects both first time buyers and the old ones.
The purpose of the increase in the interest rates is to ensure that a borrower qualifies for a mortgage and have the capacity to make the necessary repayment, driving to aim for financial stability on a person. Since this is already what is implemented, you cannot go around it but instead you have to find the most basic and practical way to qualify considering as well that the bank will have the tendency to look into your income, savings and state as well.
The most important thing that you can do about this situation is to learn to save money in any possible way that you can by living frugally and with less debt as needed, or you can either find a possibility to increase your source of income to meet the demands. Another way is for you to start your own business or invest in something that is profitable, or perhaps you can just find a job that pays higher and more that can suffice your needs even for this mortgage.
All of these options that you have may at least take a while to achieve financially, and what are the chances that another change may come up by that time, therefore the most urgent that you can do is to increase the value of your existing home to get a better sale for it and you may have some money for down payment saving you from this hassle, or perhaps you may just have to find a cheaper home for now.