Posted in This is important news for all members of the military and is well worth reading the entire article.
http://www.verico.ca/michael_campbell_insuredmortgages/
Currently all lenders in Canada are allowed to qualify borrowers based on the actual rate of the mortgage (including your interest rate buy down) as long as you take a 5 year fixed rate term (or longer). After this change (which is effective October 17th), you will have to qualify based on the 5 year qualifying rate (which is currently 4.64%) - in essence a 'stress test' to see if you could afford a 2.25% increase in interest rates and still qualify for your mortgage.
This change impacts borrowers with lower incomes and first time buyers the most. If you currently have a preapproval in place, whether with us or another lender/broker, we strongly advise you to call us to re-check your budget, as your purchasing power could have just dropped by as much as 20% overnight. Send us an email or call (613)394-5810.
#mortgagerulechanges #militarymortgages #firsttimebuyers
