JUST ANNOUNCED – STRICTER LENDING RULES ENFORCED FOR BUYERS MORTGAGE APPROVALS
Unlike many 3rd world countries around the world, Canada has long protected and shown a great amount of pride in the middle class. Today the government of Canada has taken extra measures, on top of the 15% foreign buyer tax, to help stabilize the housing market in Vancouver and Toronto hoping and to attempt to help the middle class stay in the market.
The govenerment of Canada made the decision after review of years of low interest rates and its affects not the average price of homes and how much risk Lenders are willing to risk ignored to profit off of the loans. So in attempt to secure lending safety the Government of Canada has implemented a stress test for all insured borrowers.
If you were planning on being approved with less than 5% down at the current lending rates of approximately 2.5% you will be out of luck after October 17, 2016. Anyone who is planning to purchase with less than a 20% down payment will have to be initially approved by the lender at the Current Posted Canadian Interest Rate of 4.64%.
So if you are on the fence about whether or not NOW is the time to buy do not hesitate to call me. This will substantially affect your buying power!
Full Government Report can be found here: Ensuring a Stable Housing Market for all Canadians
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