New Mortgage Rules

New Mortgage Rules

October 5, 2016
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Tania Grozelle - bank secretsIf you or anyone you know is thinking of buying a home, now would be the time to take action. New mortgage rules may affect your buying power effective October 17th. Our finance minister has announced that all insured mortgages must qualify using 5 year benchmark rate currently 4.64% instead of the actual interest rate currently around 2.39% for 5 year fixed. What this means is that you could potentially have a significantly lower pre-approval amount.For example: Suppose your pre-approval amount today is $450,000 purchase price. AFTER October 17th your new pre-approval amount would be closer to $360,000. That is a HUGE difference. You must be lender and insurer approved before October 17th for current guidelines to apply. Contact me to find out more.

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