Blog by Evon Mayer

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EMERGENCY ROOM @ PEACH ARCH HOSPITAL - REALTOR CHALLENGE

ATTENTION BUYERS WHO NEED A MORTGAGE - DO NOT DELAY PAST OCT. 17, 2016

You may not quality for the amount of Mortgage you need if you delay.

For those of you who recently put your Mortgage together & have your New Home in place - Congrats! you/we made a good decision to act recently instead of delay !

Federal Government announced today that borrowers will have to qualify @ 4.64% to get a 5year variable @ 2.2% or 5year fixed @ 2.29%

For example: That means that if you wait past Oct. 17, 2016 then instead of qualifying for $300,000 - you will only qualify for $225,000

IF YOU - OR ANYONE YOU KNOW - IS SITTING ON THE FENCE OF A PURCHASE REQUIRING A MORTGAGE

—— PRIOR TO OCT. 17, 2016 IS BETTER.

THE RATES WILL STILL BE LOW - BUT THE AMOUNT OF THE LOAN WILL BE RESTRICTED.

Call me if you think this will affect you - so that we can work together to get you into a Mortgage product before Oct. 17, 2016.

Call Evon for further details …  See below …

5 YEAR VARIABLE 2.20%* 5 YR FIXED 2.29%* 

 

STRICTER MORTGAGE QUALIFICATIONS ANNOUNCED

Today the Finance Minister announced stricter mortgage qualifications for applications received on or after October 17th.  

  • Borrowers applying for insured mortgages will have to qualify based on the Government's Benchmark Rate, currently 4.64% instead of the contract rate
  • This now applies for all mortgage terms
  • Currently if borrowers choose a 5 year fixed term they are qualified at the contract rate which is around 2.44% for most lenders  

HOW DOES THIS IMPACT YOUR CLIENT'S QUALIFICATION?

  • The borrower must have an accepted offer to purchase and I need to submit their mortgage application for approval prior to October 17th, 2016
  • Today a borrower who qualifies for a $300,000 mortgage will qualify for a $225,000 mortgage under the new rules.
  • Note - Mono-line lenders insure all mortgages at all loan to values (even if more than 20% down payment) so most borrowers will be affected

WHAT CAN YOU DO TO HELP YOUR CLIENTS AND YOUR BUSINESS?

  • Contact all clients you are currently working with or who are considering buying a property and advise them of the upcoming changes

TAX LOOPHOLE CLOSED

  • Effective immediately "an individual who is not a resident of Canada in the year the individual acquired and sold the residence will not be able to claim the capital gains tax principal residence exemption"