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Wait, what?
Yes more changes to how you qualify for a mortgage have been confirmed today by our mortgage regulator, the Office of the Superintendent of Financial Institutions (OSFI).
Read their official announcement here.
What did they do?
There are a number of changes. The most wide reaching imposes a stress-test rate for qualification on those with 20% or more for downpayment or in equity effective January 1, 2018. You must qualify at the GREATER of their set benchmark rate of 4.89% or your mortgage contract rate + 2%.
I have a rate hold I should be okay?
No. Let me say that again, no. You will be required to have a 'live deal' or accepted offer to purchase or commitment issued & accepted for refinance prior to the implementation date.
Lets talk numbers. How much I can afford now?
For easy math this will reduce your overall affordable mortgage amount by 20%. This will of course increase demand on all those actively looking currently to secure an offer prior to the implementation date.
Why have I not heard of this before?
If you are actively looking and have NOT been told about this my guess is you are not working with a licensed Mortgage Professional. Please contact your lender right away to ensure you understand how this impacts your situation.
I want to know more...
Call me at 604-612-6970 or email me at katy@mackenziemortgage.com
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Here are also some of the most recent articles posted regarding the changes to read in your spare time.
Please share this article so more are informed of how this impacts them. Thank you!