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Wednesday Nov 01st, 2017


If you have been sitting on the fence about getting into the market, now is the time to get your mortgage pre-approval!  Proposed mortgage rules will reduce your home-buying power by 21%, says a report from mortgage comparison site RateHub.

Let’s have a look at what this means for the average household. 

“A household with an annual income of $100,000 and a fixed-rate 25-year mortgage at 2.84 per cent can afford a house worth up to $726,145 currently, RateHub calculated.  Under the new rules, the same household would be able to afford only $573,791, a reduction of more than $150,000.”

That will mean many will get pushed out of the market and unable to buy a home.

This chart shows the purchasing power of a household before and after the changes take effect with 20% down payment:

Household Income

Purchasing Power Today

Purchasing Power After Jan 1, 2018










*This chart is for illustration purposes only. Based on 25-year amortization, 20% down payment, 5-year term, qualifying rate of 3.29% today and 5.29% January 2018. This does not include property taxes, hydro or condo/maintenance fees. OAC.

These changes will affect everyone who is looking to purchase a home and/or refinance their current mortgage.

Bottom line, the time to act is NOW, waiting means lower buying power and for some, not able to qualify for their home purchase.

Contact me anytime before your time runs out!

Tags: mortgage