NEW MORTGAGE RULES COMING JANUARY 1ST, 2018

Published By: on October 24th, 2017 in Category Home Owners Hints, Nanaimo Real Estate
Published By: on October 24th, 2017 in Category Home Owners Hints, Nanaimo Real Estate

Written on October 24, 2017

WHAT YOU NEED TO KNOW:

If you are planning to do any of the following:
• Refinance your existing mortgage
• Switch your existing mortgage to a new lender
• Purchase an investment property
• Purchase with 20% or less down
• Purchase with 20% or more down (stress tests now apply to conventional mortgages too)

You may find it harder to qualify for the funding you require.

Although rates are still low, the “stress test” levels are rising. This means that you have to show that you can manage payments for a rate that is 2% higher than your actual rate.
For example if you are given a rate of 3.39% you will need to qualify at 5.39%.

There are good reasons for this stress test. The banks are trying to discourage buyers who are stretched to their limits at current rates and who may default on their mortgages if interests rates rise in the future. Lessons learned in 2008!

If you think that these new regulations are going to affect your borrowing power, and you are thinking of buying or refinancing in the new future – ACT NOW!
After Dec.31st your options will become more limited.

Please call the Love Real Estate Group for more information – 778.557.6583

Testimonials

We really appreciated Lisa’s help finding the perfect condo for us in Nanaimo. Lisa was a pleasure to work with, responding promptly, cheerfully and efficiently to even the smallest request. She worked tirelessly to get us familiar with different neighbourhoods and to consider different options. Even after the sale was completed successfully – which she facilitated professionally and expeditiously – she was always available to help. Working with Lisa was a great experience.

Alison MacPhail

I am a happy repeat client. Love Real Estate Group sold my two previous houses selling/buying and a lot purchase within a few years. She had lots of patience, listened to me and helped me figure out what do I want and what is the best for me. She was trying to find a real home for me and was not a just rush to push me to buy and move on type. I had a small budget to buy a lot to build on and Love Real Estate Group was an awesome negotiator. I went through many hurdles with these 3 sales and purchases. Every time I had an issue, Love Real Estate Group helped me out and I was able to carry on to get my home. Love Real Estate Group are not simply selling or buying a house for me, They made my dreams come true and can make yours come true as well. They are my tailor-fit realtors.

Eliah Kim