New Mortgage Application Rules

Real Estate Agent with Keller Williams Experience Realty, Brokerage

On March 30th some changes to the mortgage application process that may affect you came into play. The change regards the placeholder amount for heating costs on your mortgage application and will affect how lenders calculate your debt servicing ratios – i.e. how much money you have to spend on a mortgage.

Traditionally the heating expense amount on a mortgage application has been $85. This has now been changed to a scale of amounts depending on the square footage of the home:

Property Size

Heating Cost Amount

Less than 2,000 Square Feet

Minimum $1,020 Annually or $85 Monthly

2,000-3,500 Square Feet

Minimum $2,220 Annually or $185 Monthly

3,501+ Square Feet

Minimum $3,300 Annually or $275 Monthly


Your debt service ratio helps the lender to determine how much of a mortgage payment you can safely handle each month, and in turn how much mortgage a lender will be comfortable to loan you. The increased heating cost amounts will eat into your loan amount.

The good news is that mortgage rates are still sitting at historical lows, so it’s a great time to refinance your mortgage or purchase property if you’re able to do so. We work with many reputable Mortgage Brokers and Agents who give our clients preferred rates, should you want to find out more. For more information visit the ‘Contact Us’ page on our website or give our office a call.



The Peggy Hill Team 


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Peggy Hill

Broker - Barrie Real Estate
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