Are you aware of the new mortgage rules that have will be in effect as of January 2018 as per the Federal Government? If not, and you are considering buying a home, it is a must to understand how these rules may hinder you from buying the home your want.
The Office of Superintendent of Financial Institutions OSFI unveiled a final draft of new mortgage qualifications.
You will qualify for LESS of a home after January 2018!
The rules will require buyers who are making down payments of 20% or more of a homes vaule - who do not need mortgage insurance - to prove they could still afford their mortgage payments if interest rates went up 200 basis points (two percentage points) then the rate they negotiated.
What exactly does that mean? If you do not qualify for the monthly payment, at the higher rate, you don't get the mortgage! You will be qualifying for less of a home.
Today, maybe you qualify for a mortgage of $500,000, but after January 2018, because of the "stress test", you now only qualify for $475,000. Depending on what you are buying, this could really hurt, and you may be forced to buy a lesser property than you want or need.
Going to be a busy 2017 fall real estate market due to the buyers scrabbling to buy before January 2018.
Best advice I can give you.... talk to your mortgage professional as soon as possible... and work with a experienced real estate agent to help you secure your new home. Not much time is left, don't delay.
Royal LePage Northstar Realty