BUYERS TAKE NOTE!!!! YOUR PREAPPROVAL MAY GO DOWN IF YOUR DOWNPAYMENT IS UNDER 20% ,SO LETS GET YOU A HOUSE ASAP!!!
There was a major announcement this morning from the Finance Minister in regards to housing in Canada. There was very little color around the announcement but I wanted to communicate the most important notes as I see them coming out. There will be more detailed information and policy to follow but I wanted to be sure to get you information as fast as possible. As of Oct 17, 2016, mortgages looking for approval in a default insured form are required to qualify at the “qualifying rate” and not the discounted 5 yr. rate. This means that if a client’s debt ratios qualified for a new mortgage using the 5 yr. fixed rate of 2.49% they will now have to qualify at a rate of 4.64%! This will force clients to purchase a lower priced property than they would normally have looked at to remain under the debt ratios. For all your clients looking to purchase they need to get moving now. If they have a live deal prior to the 17th then they can get in under the current rules." So what does this mean to you? If you are currently approved at a price point of $250,000 at 2.49%, you will most likely be nowhere close to that amount under the new qualifying rate of 4.64%.
If you are in the market to buy then contact me NOW!