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Showing posts with the label Bank of Canada

Increase to Bank of Canada's Qualifying Rate from 4.84% to 4.89%

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Who:  The Bank of Canada  What:  Qualifying Rate - This rate is a weighted average of the big 5 bank's 5 year posted rates.  It is used to qualify all insured mortgages as well as variable rate mortgages or those with terms shorter than 5 years.  It is not the actual interest rate that the client will receive, simply a rate used for qualifying. Why:  It is essentially a "stress test" to ensure borrowers can afford an increase in payments, should rates go up. When:  Effective immediately. It is important to note that some lenders may honor the old qualifying rate for pre-approvals however  most will require borrowers to qualify at the new, higher rate. If you are pre-approved and currently shopping for a new home, it is important that you consult with your Mortgage Broker to ensure their maximum mortgage amount has not changed. For any questions, please feel free to contact me. Have a great day! www.christinebuemann.ca...
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New rules coming for mortgages

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There has been a lot of speculation recently about the change in Government and how it will affect the mortgage industry. It is well known that they are debating tightening up rules for mortgage lending yet again, but they have not yet confirmed what the changes will be.  Perhaps the most discussed option is the higher minimum down payment. The proposed change would be a gradual system with the new minimum down payment increasing to 7% for a purchase purchase of $500k and then to 10% for home purchases of $700k and higher. They are very clearly targeting the larger centres (Vancouver and Toronto) where many have felt the prices have been overinflated for quite some time. They have already changed the minim down payment to 20% for homes valued over $1M.  So how does this affect you? The main concern is First Time Buyers. In my area of Northern BC, the average home is around $275k so I don't feel like it will directly affect too many First Time Buyers. If the larger housi...
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