by Cam Bird
on Friday, October 27th, 2017 at 5:59pm.
The Big Banks have decided to alter Mortgage Guidelines once again.. This video gives you an insight into what is happening..
Click on the link or copy and paste into your web browser to watch this 3 minute video..
Hello Everyone, Cam Bird with Re/Max Saskatoon. I just wanted to send out a quick update on the new upcoming mortgage stress test in January 2018 that the Federal Government has implied. Where it is changing the market, place is Buyers with even 20% cash down payment now will have to qualify at the posted 5year interest rate, which currently is about 4.8%. However, you are able to receive the lower 3.5% (as of Oct. 2017) As of right now, the 5%-20% cash down Buyers, have had to these guidelines since October 2016, where they have to qualify for the posted 5-year rate. Now in January 2018, Buyers with 20% or higher must approve for the posted 5-year rate. This new rule is going to reduce Buyers Buying Power over time. As an example, if a couple is making a $100,000 a year, the standard normal debt, those Buyers would qualify for approximately $720,000 purchase however, as of January 1, 2018 the Buyer would only qualify for $575,000 purchase price. There is a significant reduction in Buying power, if you are a Buyer looking! Right now, there is a lot of homes for sale, rates are setting around 3.5% for a 5 year fixed rate. It is an awesome time to be Buying! To our knowledge, the reason for the change is they are conditioning the Buyers, so that in the event that in 5 years down the road interest rates do rise, that the home owner will not have financial difficulties with the mortgage they have now. If you have any questions in regard to this, please don’t hesitate to contact me, Cam Bird 306-221-0654.