As of January 1 2018 all new mortgages (regardless of down payment amount) in Canada MUST have a stress test applied to them at the time of approval.
Regardless of the actual interest rate being offered by a lender, the borrower MUST qualify for the new mortgage at the Bank Of Canada (BoC) Rate OR the rate offered the consumer PLUS 2%.
This ‘Affordability Chart’ is based on the borrower’s gross income and using the current Bank Of Canada rate of 5.19%. If the ‘actual’ mortgage rate being offered to the borrower is higher than 3.19%, then the borrower will automatically have to qualify at that rate PLUS 2.0%.
For example, if the offered rate is 3.49%, then the ‘qualifying rate’ used would be 5.49% - and the size of mortgage the borrower could qualify for would be less than the numbers shown on the chart below.
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Here are 5 proven ways to move safely and smartly towards your real estate buying goal...
- Download a free copy of my Ultimate Home Buyer’s Guide book
- Get a custom listings search set up for you and receive targeted listings daily
We can set up your HOMEWatch search for any area you choose (not just downtown Toronto), and you'll get immediate access to homes within minutes of them being listed. Just leave some search criteria here
- Set up a step-by-step plan with the best ways to get to your home buying goal
Our first-time and move-up buyers have told us that being able to meet with us on a casual basis as early in the process as possible, even if their purchase date was 6-12 months away, really worked the best for them.
To arrange your no-obligation Starbucks Strategy Session, click here.
- Join us for a Market Experience Tour - pick your favourite neighbourhoods and price range
The Market Experience Tour is a great way for you to figure out which neighbourhoods and condo buildings are right for you, and you’ll also get a good sense of what’s available in your price range.
Pick the date and time you like to go on your Tour.
- Don’t start your home buying experience on the wrong foot - Meet for a Buyer Consultation first!!
Don’t make the same mistake. Let’s set a time to meet and go over how the complete home buying process works, find out what your likes and dislikes are and what pitfalls you’ll want to avoid, before you seriously start looking for a house or condominium.
This is the best 90 minutes of time you’ll ever spend - set up your private Buyer Consultation.