Most of you have heard about the mortgage stress test for all homebuyers coming into effect January 1, 2018. The stress test will make you qualify for the current benchmark rate of 4.89 percent or 2 percent above your approved mortgage rate, even if you have 20 percent down. For example someone with 20% down could afford a mortgage of $550,000 and in the new year you will only be able to afford around $435,000. People are starting to lock in their mortgage rates and are feeling the pressure to buy now. It is a good time to buy, properties are starting to sit a bit longer and with less muliple offers especially in the Tri-Cities. But if you just aren't quite ready financially, I have a solution! Many people don't know that Credit Unions are not included in the stress test. Canada's banks are governed by the Office of the Superintendent of Financial Institution of Canada (OSFI) while Credit Unions are governed by Canadian Credit Union Association. Credit Unions can be around 6 months behind Canadian Banks, giving you the opportunity to get financially ready and buy before Summer 2018.
For more information Click Here
If you are thinking of buying in the near future and have not spoken to a mortgage broker, call me today and I will refer you to one of my trusting, fantastic mortgage brokers.