![\"mortgage](\"https:\/\/www.matrixmortgageglobal.ca\/wp-content\/uploads\/2018\/04\/rentalhome.jpg\")
<\/p>\nAccording to a report that was recently released by CIBC Capital Markets, 47% of mortgages in Canada will be up for renewal in 2018. This is a significant increase from the 25-35 per cent of mortgages that are normally up for renewal in a typical year.<\/p>\n
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This comes at a time when interest rates are starting to rise and when new regulations have made it more difficult to apply for a mortgage through the federally regulated chartered banks. Because of this, some homeowners could be in for a shock when they try to shop around for a better interest rate.<\/p>\n
The new regulations mean that Canadians will have to pass a financial stress test when they apply for an uninsured mortgage with a federally regulated lender. The new guidelines state that homebuyers must prove that they can make mortgage payments at a defined benchmark if they are to be approved for a mortgage from one of these lenders.<\/p>\n
Those who already have a mortgage will be exempt from the stress test only if they renew with their current lender. This creates a problem because it does not give the major banks much incentive to offer more competitive rates.<\/p>\n
At a time when Canadians are already struggling to pay off debt, the fact that banks could potentially offer less competitive interest rates to those who are most financially vulnerable is troubling. A piece of good news in all of this however, it that the Bank of Canada is expected to keep interest rates fairly low for at least another year.<\/p>\n
This comes at a time when interest rates are starting to rise and when new regulations have made it more difficult to apply for a mortgage through the federally regulated chartered banks. Because of this, some homeowners could be in for a shock when they try to shop around for a better interest rate.<\/p>\n
The new regulations mean that Canadians will have to pass a financial stress test when they apply for an uninsured mortgage with a federally regulated lender. The new guidelines state that homebuyers must prove that they can make mortgage payments at a defined benchmark if they are to be approved for a mortgage from one of these lenders.<\/p>\n
Those who already have a mortgage will be exempt from the stress test only if they renew with their current lender. This creates a problem because it does not give the major banks much incentive to offer more competitive rates.<\/p>\n
At a time when Canadians are already struggling to pay off debt, the fact that banks could potentially offer less competitive interest rates to those who are most financially vulnerable is troubling. A piece of good news in all of this however, it that the Bank of Canada is expected to keep interest rates fairly low for at least another year.<\/p>\n