Breaking News - New changes to mortgage limits
Tuesday Oct 17th, 2017
As of January 1st, 2018 purchasers will qualify for a lesser mortgage amount. n our opinion, this may change the market conditions again, as buyers will want to finalize their purchases before the end of this year!
So if you are thinking of selling or buying, please contact us for a meeting and let's have a chat to see how this new rule affects you.
“OSFI hasn’t just tapped the brakes, it’s jumped on the brakes with both feet,” said Rob McLister, founder of RateSpy.com.
This new rule takes place starting on all mortgages. Here is what this means...
The Current Mortgage Limits until
Uninsured Mortgages currently require a down payment of 20% or more, which means you are entitled to a mortgage approximately 7 times your income. So if you earn $100,000 income, you can qualify for a $700,000 mortgage. These mortgages do not require default insurance.
Insured Mortgages currently represents those mortgages where the down payment is less than 20%, which means you are entitled to a mortgage approximately 5 times your income. So if you earn $100,000 income, you can qualify for a $500,000 mortgage. These mortgages require default insurance from an insurer such as CMHC, Genworth or Canada Guaranty.
New Mortgage Limits starting
All Mortgages Uninsured and Insured will have a limit starting which will be approximately 5 times your income, regardless of the mortgage being Insured or Uninsured. So if you earn $100,000 income, you can qualify for a $500,000 mortgage regardless of how much down payment you put.
Further details are to come regarding these changes, in the meantime, click on the article below to read more about the changes announced today: