THIS IS THE BIGGEST GROUND SHAKING RULE CHANGE OF ALL TIME!
If you are thinking a buying, refinancing or are renewing within the six months
you need to get approved as soon as possible. Such an approval now will get you a rate guarantee up to 4 months AND WILL PROTECT YOU FROM THE NEW LEGISLATION.
The federal government as of January 1st is making it much more difficult FOR EVERYBODY to qualify for a mortgage no matter what the purpose of the mortgage is, how good your credit is and no matter how much equity you have.
In a nutshell, let’s say your mortgage contract rate is 2.9%. To qualify under the new rule you will need to qualify at 4.9% or 2% higher even though your payment is based on the contract rate.
Everyone will qualify for 20% less than today whether you are purchasing or want to refinance so if you have any intention to buy, renovate, renew, refinance for any reason.
In fact, the new rule may come into effect sooner as some lenders, as in the past, will decide to adopt the rule change earlier so you cannot assume that you have until January1st to get a mew mortgage. December 1st is a more likely cut off date.
This rule change is not only completely unnecessary but completely uncalled for since it is intended to cool a real estate market that has already cooled. This is the most significant change in history and it is likely to be of a more permanent nature.
Unfortunately, the consequences may seriously impact the real estate and mortgage markets well beyond the intended purpose.
Many home purchasers will only qualify for 20% less purchase price and realtors predict that home sellers at the high end of the market will be most affected since the high end will become that much more difficult to sell.
To say it is curious how the federal Liberal government seems not to care about public opinion and is alienating millions of Canadians against them, is an understatement.
Good luck with the next election boys and girls, Aye!
PLEASE UNDERSTAND THAT YOU MUST HAVE A FULLY UNDERWRITTEN PRE-APPROVAL IN WRITING IN ORDER TO COMPLY UNDER TODAY’S RULES.
BEWARE, THE BANKS DO NOT DO THIS, THEY ONLY PRE-QUALIFY BUT WE DO AND YOU CAN RELY ON OURS. WE CAN ASSIST YOU TO PURCHASE UNDER THE OLD RULES FOR 4 – 6 MONTHS FROM NOW, THAT IS UNTIL NEXT APRIL, BUT ONLY IF YOU APPLY AND ARE APPROVED NOW.
If you know anyone thinking of buying, refinancing, renewing, renovating etc., please let them know about this article and have them call us for more details as soon as possible.
We are here to inform, help and protect you!