05/29/2021
Alert!!! New Home Buyers Stress Test Rules come into affect June 1st, 2021.
The Office of the Superintendent of Financial Institutions (OSFI) recently proposed a change to uninsured and insured qualifying rate rules. Upon confirmation, effective June 1, 2021, OSFI will require uninsured and insured mortgages to qualify at the greater of:
the OSFI-defined five-year minimum qualifying rate (5.25%) or the customer's contract rate + 2%.
Example: If the customer's contract rate is 2.29%, their qualifying rate would be the 5.25% OSFI rate, since it's higher than the contract rate + 2%.
What you need to know
1) The impact to the customer of this change is estimated to be up to a *4% reduction in the principal amount*, depending on the customer's circumstances.
2) Existing pre-approvals must have a Purchase and Sale Agreement (PSA) signed *before June 1, 2021* in order to not have to requalify under the new rate rules.
3) For refinances, any new submissions or resubmissions with material changes received on or *after June 1, 2021* will be qualified under the new qualifying rate rules.
If you are looking to refinance, debt consolidation or buy a house call quickly and get qualified under the current rules.
AMOY HUGH, MORTGAGE AGENT
AYELE FINANCIAL CORPORATION
Licence #: 12877
d. 647-983-7264
f. 1-866-713-9031
e. [email protected]
w.
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