New Mortgage Qualification Rules
Oct 07th, 2016
It was recently announced by the Federal Government that the qualification rules for insured mortgages will be changed effective October 17, 2016. We wanted to help you clarify what this may mean to you if you are in the market for a new home.
Effective October 17th, 2016 all homebuyers considering an insured loan must qualify for their mortgage insurance at an interest rate which is the greater of their contract mortgage rate or the Bank of Canada’s conventional five-year fixed posted rate (at this time, 4.64%*).
The new rules will apply to new mortgage insurance applications and approvals received after the effective date, or when the homeowner enters a contract of purchase and sale for the property against which the loan is secured after this date. Applications received between October 3 and 17 must be funded by March 1, 2017 to be exempt from the new qualification rules.
As of today, with a household income of $80,000 and a downpayment of $40,000, the maximum purchase price you would be approved for is $520,000. As of October 17th, with the same household income and downpayment, that would drop to $425,000.
Now is the time to get approved! With a selection of homes ready to move in to as soon as November 2016, visit us today to learn more about Everly Green and meet with one of our preferred mortgage brokers to get your application started.
- Rooftop townhomes are priced from $505,900*
- Traditional townhomes are priced from $499,900*
- Strata single family homes are priced from $829,900*
To view our two fully furnished display homes, please visit us between 12 and 5pmdaily (except Fridays).