Recently the federal government announced new mortgage legislature. The rules will effect anyone purchasing a home with less than 20% down payment. As of October 17, buyers with less than 20% down will need to qualify on a five year benchmark rate versus a lower variable rate (i.e. 4.64% vs 2.25%). This change will drastically affect the maximum purchase price approved for buyers.
Let's say you could previously purchase a $400,000 home with 5% down, being approved at 2.25%. Under the new rules, the same buyer will need to qualify at the higher rate of 4.64%, which would result in a maximum purchase price closer to $300,000.
There's still time: you need to be preapproved prior to October 17th in order to avoid the effects of these changes.
Use the contact box to the right to reach out to us for a mortgage preapproval and a home-buyers package designed to get you moving on your home search.