This week, the Canadian Government announced new mortgage lending rules that will affect every buyer and seller from coast to coast. The rules were designed to try to cool the hot Real Estate Markets in Vancouver and Toronto and to provide a safe guard for buyers to prevent them from over purchasing. The new rules make anyone who is looking for a new mortgage to undergo a mortgage stress test. Any lender who is looking to approve a mortgage most take the buyers mortgage amount and apply it to a much higher interest rate of 4.64%. If the buyer can afford to make the monthly payments at the higher rate, then they will be approved for the product. If not, then the mortgage amount will have to be reviewed until the lending ratios go in line. These changes are fully explained in the video above.