MUST READ - NEW MORTGAGE RULES

If you were planning on purchasing your home with less than 20% downpayment (meaning you are putting down as little as 5%)….. the mortgage amount you could qualify for has significantly decreased.

This new rule was imposed by the Federal Government to ‘ensure a stable housing market’.

What it really does…..limits the borrowing power of the regular person.

EXAMPLE: Assuming 5% down

If you earn $50,000/ year salary….you could qualify for a mortgage of approximately $333,000. Purchase price of $348,000

As of October 17, 2016……the max mortgage you can qualify for is approximately $262,000. The purchase price is approximately $275,000.

This decreases your purchasing power by 21%.

This might work in the rest of Canada, but in Vancouver with the non-existent rental supply now making it harder for the regular person to own their home……it is only to get harder and harder to put a roof over your head.

If you have 20% downpayment, no worries…….

BUT….if you have been sitting on the sidelines with 5% downpayment….you should jump into the market.

CALL or EMAIL us if you would like to know what you can qualify for and how this federal law will affect you!

Details here:  

http://www.fin.gc.ca/n16/data/16-117_1-eng.asp