05/25/2021
As of June 1st, the federal government has increased the current mortgage stress test rules for all new mortgage applications, regardless of the amount of downpayment. Borrowers will need to prove they can afford payments based on the higher of the contract rate plus ๐ฎ%, or a new floor rate of ๐ฑ.๐ฎ๐ฑ%, up from the current ๐ฐ.๐ณ๐ต%.โ
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โThe recent and rapid rise in housing prices is squeezing middle-class Canadians across the entire country and raises concerns about the stability of the overall market,โ Finance Minister Chrystia Freeland said in a statement accompanying the announcement from the government.โ
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In a statement released by the Mortgages Professionals Canada yesterday, โthe rapid rise in prices making qualification more stringent now will disqualify many of the Canadians the government has promised to support. Since the First Time Home Buyers Incentive program also requires an insured mortgage qualification for borrowers to be eligible, the existence of this program, even with the increased limits, will do nothing to help these newly disqualified buyers.โโ
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If you are planning to buy a home in ๐ฎ๐ฌ๐ฎ๐ญ, please reach out to us to ensure you are pre-approved based on these new guidelines.โ
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๐ ๐ฐ๐๐ฟ๐ผ๐ป๐Mortgages.comโ
๐ (๐จ๐ข๐ฆ) ๐ฉ๐ฅ๐ช-๐ช๐ฃ๐ค๐ชโ (778) 316-5373
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