Good Afternoon,
Today it was announced there will be changes to the mortgage stress test April 6th 2020 for insured mortgages. The change will be the contract plus 2%. As an example, that takes the current stress test from some lenders at 5.19% to 4.79% as a qualifying rate once effective.
Below is the full press release and how it will help the average pre approval broken down by The Angela Calla Mortgage Team is located below
Combined household income $120,000.00 with the current stress test is a $580,000.00 purchase price
New stress test, this applicant potentially qualifies for a purchase price of $607,500.00
Change in amount $27,500 subject to approval
- While this is a change in the right direction, please note this will heat up what is already shaping up to be a busy spring market.
- To increase your purchase price, you must also increase the down payment (in the example above an extra $2,500.00)
- This will also increase your closing costs slightly. Also note, the strata fees and property taxes may also be increased at this point and impact the qualification.
If you or someone you care about is looking to get pre- approved or revisit there existing pre approval please reach out to us directly or introduce us in an email to callateam@dominionlending.ca and also our app is a very helpful tool we recommend to utilize download it here: https://dlcapp.ca/app/angela-calla
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Angela Calla is a 16 year award-winning woman of influence mortgage expert. Alongside her team, passionately assisting mortgage holders get the best mortgage, and educating them on The Mortgage Show on CKNW for over a decade and through her best-selling book The Mortgage Code available on Amazon. To purchase the book click here: The Mortgage Code. Proceeds from all sales will be donated to Access Youth Outreach Services. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.
