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 …
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"