JAN 1, 2018 - NEW Rules take effect
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"Stress Test" Minimum qualifying rate
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OSFI
is setting a new minimum qualifying rate, or “stress test,” for
uninsured mortgages (Mortgages with more than 20% Down Payment) - Guideline B-20 now requires the minimum qualifying rate for uninsured mortgages to be the GREATER of the five-year benchmark rate (4.89% today) published by the Bank of Canada or the contractual mortgage rate +2%.
· For Example;
Contract rate = 3.09% (today's 5 year fixed rate). Therefore, the client must qualify at 5.09%.
Conservatively, this will reduce someone’s ability to borrow by approximately 20%! |
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| How to Benefit from the Hot Property Market |
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| The Housing Market in Victoria has been extremely hot for the past eight months with both Sellers and Buyers reaping the rewards. The current inventory is lower than average and coupled with low interest rates, the current housing market will continue to remain hot.
If you are planning to sell or buy within the next three months, give me a call and I will ensure you realize the best result possible.
My Best, Arran |
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HOT LISTING - REV PROPERTY
$699,900
Est. Rents Main Unit $2,700/month
Unauthourized Suite $1,200/month
Taxes $ 3,400/yr - $283.33/month
Maintenance + Vacancy $2,000/yr
EST Net - $41,400/yr
@ $699,900 = 5.9% Cap APPROX.
CALL me @250-884-3980 to find out more!
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