Michele M. is retired form a provincial government institute in Quebec living in Montreal. She won’t have a problem being accepted for an upcoming loan, but her situation highlights the ripple effect the new rules have created.

Michele is in a good financial situation. She’s buying a new home for herself and will be putting a down payment of $160,000 on a purchase of $335,000.

Since she is retired, she would like to keep the most flexibility possible on her mortgage. Michele wants the best rate for an insurable conventional mortgage, but has to take a maximum amortization of 25 years. This means that not only is she penalized for putting more than 20 per cent as a down payment compared to one year ago, but on top of that she has the 25 years amortization to limit the rate increase financial institutions are charging her.