Be prepared for a new round of rule changes. The government may be announcing new stricter rules for mortgage qualifications. Among the rules changes, 2 major changes are that now all mortgages insured or not insured must be qualified at the qualifying rate. The 2nd rule change is that the government will be disallowing bundled mortgage.
Up to now, only insured mortgages had to qualify for the qualifying rates. Going forward after the end of the month all mortgages must qualify at the qualifying rate. This will further reduce the number of homeowners that will qualify at an institution.
Disallowing bundled mortgages will also reduce the number of borrowers that qualify at institutions. Up to now, you could get a 1st and 2nd combined in a bundle at a lending institution. This helped borrowers buy even if they didn’t have 20% down.
All these rules changes mean more deals will be funded privately. The good news is that private lending is getting very competitive. This means rates and fees are dropping and making more appealing to get a private mortgage.