ACT NOW BEFORE NEW MORTGAGE RULES TAKE INTO EFFECT

stresstestimages

Before only those with less than 20% downpayment had to undergo a mortgage “stress test”.  New rules will be implemented Jan 2018 for all borrowers for those with 20% downpayment or more.  

The “Stress Test” means that you need to qualify for either the five-year average posted rate (currently at 4.89%) or 2% higher than your actual mortgage rate, whichever is higher.

What this means is that if the Bank qualifies you for a mortgage amount based on 2.79%, you will have to qualify for a mortgage payment calculated at 4.89% even if your mortgage payment is actually at 2.79%.  This will impact significantly how much the bank/lender will allow you to purchase.  

The stress test won’t apply to existing mortgage renewals as long as you stay with your existing lender.

ATTENTION INVESTORS:

For those of you thinking of buying a rental property with more than 20% downpayment, you should ACT NOW before Jan 2018 to increase your changes of approval.

ATTENTION UPSIZERS:

For those of you thinking of selling your Condo or Townhouse and upsizing to a House, you should ACT NOW before Jan 2018 to be approved for a higher purchase.

CONTACT ME for more information.  John 604-727-0822 or email john@johnpatricelli.com