Monday, October 3, 2016 / by Evelyn Lopes
Government Announces New Mortgage Regulations
Making it Harder for Buyers to Qualify (Effective Oct. 17th)
The Federal Government has just announced another important mortgage rule change in efforts to cool the housing market by implementing what they call a "stress test".
In other words qualifying for a mortgage just got a whole lot MORE DIFFICULT.
If you are considering buying a home you cannot afford to wait any longer, call me TODAY at 905-965-5902.
Effective October 17th all insured mortgages are required to QUALIFY for their mortgage using the current Bank Of Canada Benchmark rate of 4.64% compared to using the ACTUAL rate that currently ranges from 2.39% - 2.44%.
Anyone that is currently in the market to purchase a home or refinance a mortgage but have not yet made an offer or committed a live mortgage needs to RE-QUALIFY immediately.
UNDERSTANDING THE NUMBERS AND HOW IT AFFECTS YOU!
Let's put this new rule into perspective......
A couple with a $100,000 income, no debts and 5% down payment can currently qualify for about a $484,000 home purchase using the current 5 year fixed rate of 2.44%.
That same couple having to qualify at the bench mark rate of 4.64% now qualifies for a $421,456 home.
You have $62,544 LESS to buy your dream home!
For more information on Housing Insurance Rules and Income Tax - CLICK HERE
Four Major Changes to Canda's Hosuing Rules-
We would love to take down all your home buying criteria so we know exactly what you are looking for. Once we have that information we will make sure you are informed daily about NEW upcoming properties.
You can reach me at any time at 905-965-5902.
These new rules come into effect on Oct 17th 2016 - if you are considering buying a home you cannot afford to wait!