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Cell 604-790-2927 | s.symes@shaw.ca

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Are You Ready For Your Mortgage Stress Test?

OSFI has announced changes that will impact how you qualify for mortgages. These changes are going to impact the amount you can obtain for a mortgage. The changes will also impact the amount you can refinance and obtain from your equity in your current home. 

 

It is important to understand these changes, because if you’re in the market, it will likely affect you. OSFI will be regulating the banks to qualify all mortgages at 2% above the posted rate. For example, if you were to obtain a 5 year fixed rate mortgage at 3.49%, you would be qualified at 5.49% with the new mortgage rules. This will mean you will get less money from lenders.

 

To demonstrate, Please see the example of home-buyers who have a down payment of $180,000. The first buyer buys their home under the current rules. The second buyer’s mortgage is obtained after the new rules are in place, and it’s going to be 20% to 25% lower! 

Current Mortgage Rules (First Home-Buyer)

 

Purchase Price

Down Payment 

Mortgage Amount

$900,000

$180,000

$720,000

 

New Mortgage Rules (Second Home-Buyer)

 

Purchase Price

Down Payment 

Mortgage Amount

$756,000

$180,000

$554,000

 

The buyer purchasing under the new guidelines can now purchase for $756,000 instead of the $900,000 under today’s guidelines. With the same down payment, the two families are purchasing drastically different properties. If you’re house hunting for your next home or an investment property, talk a professional about how this will change your options.

 

Let’s chat and review your mortgage options, you need to get your mortgage application in before early to mid-December, 2017.Please remember if you have a pre-approval it will need to be revised and requalified under the new guidelines. This will make sure it’s submitted before the lenders start enforcing the rules. Give me a call for a free consultant and we can work together and to understand your exact situation and plan accordingly.


This is your opportunity to get fit for a mortgage before it’s too late! 

 

Herjit Driver

 

Mortgage Professional

T:604-417-3900 

info@herjitdriver.com


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