Paradise, St. John’s – We invite everyone to visit our open house at 207-1539 Topsail Road on October 23 from 13:00 PM to 17:00 PM.
LATEST MORTGAGE RULES AS OF OCTOBER 17TH, 2016:
It’s not just the stress test that new homeowners have to be cognitive of…No more than 39% of income can be allotted to home expenses & the total debt service can not exceed 44% of income…interest rates are at an all-time low; personally agree with the latest changes!!! Some homeowners are currently maxed out, if the rates go up it will potentially bankrupt them!!!
Starting October 17th all insured mortgages must undergo a “stress test” that ensures a borrower’s ability to make their mortgage payments at a higher interest rate.
When you choose to get a fixed rate mortgage, you qualify at the fixed rate of the term — normally, it’s a 5 year term at 2.49%.
With the changes starting on October 17, you’ll have to qualify at the Bank of Canada rate of 4.64%!!!
Real world example:
If you make $80,000 per year and put 5% down, today you can qualify for $530,000, based on the 5 yr fixed rate of 2.49%.
After October 17th: You will only be able to qualify for $418,000 with the same 5 yr fixed rate of 2.49% — a difference of $112,000 (the difference is a result of the government qualifying you against 4.64%, not 2.49%).