|Address||Quinte West, ON K8V5P7
This is important news for all borrowers and is well worth reading the entire ad.
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 pre-approval 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.
Please call (613)394-5810 - no response will be given to email inquiries.
Senior Mortgage Specialist
Canadian Mortgages Inc.