Conventional mortgages now to be underwritten using benchmark rate*
Five-year variable rate conventional mortgages or conventional mortgages with terms less than five years now require that the borrower qualify based on the greater of the Bank of Canada five-year benchmark rate (the series V121764) or the contract rate applicable to the term chosen. For terms of five years or more, the qualifying rate is the contract rate.
example: contract rate or lower term special from lender 2.99 new qualifying rate 5.24% ***
This means if you take a term for less than 5 years or choose a variable rate is that you will qualify for less home (but lets get real no less than you would havein 2007 when rates were just below 6% fully discounted)
The Angela Calla Mortgage Team is commited to keeping you informed so when you hear of a change you will understand the affects right away! Questions? Contact us 604-802-3983 firstname.lastname@example.org
Angela Calla, AMP