NEW YEARS IS TOO LATE!
With the change in upcoming qualifing mortgage rules, there is some good news.
Pre-Approvals committed before January 1st will remain valid up to 120 days following the initial credit decision. Approved applications closing beyond January 1st will remain valid; no re-adjudication is required as a result of the qualifying rate update.
Expect the average Canadian's home purchasing power for a given income to be reduced 15-20%. Here's an example of the impact a new qualifying rate will have on the maximum mortgage proceeds and home purchase price. Amounts are based upon a combined Canadian family income of $75,000, 5-year fixed term mortgage at a target rate of 3.39%, 25-year amortization, $100,000 available for down payment, and $700 in other monthly debt obligations:
With a qualifing rate of two percent higher after January 1st, with a 20% downpayment changes dramatically. For example - qualifing purchase price prior to January 1, 2018 would be $400,000 and on January 1, 2018 would be $325,000.
If you would like a contact information for one of our in-house mortgage brokers for your pre-approval, contact us.