Motivated home buyers should act by October 17th or face the unenviable position of having to settle for a less desirable home. The government has introduced some changes to the mortgage qualification rules and October 17th is the deadline.
The new rules require that all insured mortgages undergo a ‘stress test’. The test will ensure that you can qualify for a mortgage at the Bank of Canada posted rate of 4.64% (even though you will be able to shop for market rates).
What does this really mean? You may not be able to borrow enough money to buy the home you want.
Here is an example (as provided via AREA & by a mortgage professional)
Let’s pretend the follow scenario applies to you:
Your Current Annual Family Income
Household Debt Payments
$700 per month
Property Tax Payments
$3,000 per month
As of today you qualify for a purchase price of $450,000.
After October 17th, 2016, you would only be able to buy a home worth $360,000.
That’s $90,000 LESS than today!
And the good news?
Accepted Offers to Purchase signed before October 17th, 2016 will by OK under the current rules provided that you fund your mortgage by March 1st, 2017.
Can we help you? We can assist you in purchasing ANY home or condo in the metro Edmonton market. And we will give you cash when you move in. For more information contact our broker owner Stuart Neal. He can be reached at 780-760-2014 or visit www.CashBacktoBuyers.com
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