Kyle and Rochelle M. purchased their home in Burlington for $886,000 in 2014 using a five-year conventional mortgage through a monoline lender. Their home is now worth $1.2 million and they are looking to move to a quieter neighbourhood in Burlington for approximately the same price or slightly higher.

Before the changes, a broker would have recommended a straight port or a port, blend and increase. However, with the recent mortgage changes, the monoline is unable to port because the new purchase price is over $1 million.  They are unable to consider the port/blend and increase either.

If the couple decide to purchase a new home, they will be forced to pay the penalty on the monoline. In addition, they were key applicants for the lowest rate in the market.  Again, the new rules will force the couple to pay a higher rate than someone who has a lesser credit score and down payment.  Kyle and Rochelle find it difficult to understand the general concept of paying a higher rate when they have excellent credit and a strong down payment.