On March 18, there are some new mortgage rules coming into effect that will have a direct impact on your buying power.
You can afford more:
Before March 18, you will be able to qualify for a mortgage 8% larger.
As an example, if you qualified for a $500,000 mortgage before the new rules, you would get $40,000 less after March 18.
Lower monthly payments:
Your monthly payments will be up to $200 less with a 35 year amortization.
Greater down payment:
The percentage you need to put down will remain the same, but since you can borrow less, you will need to save more to buy the same property.
Which documents do you need before March 18th?
To qualify under the old rules, you must have a signed purchase contract before March 18th. Once you have the contract, your mortgage broker will submit your application under the old rules. The deal may close past that date.
35 year amortization isn’t always the best option, but it provides a lot of flexibility to qualify borrowers for larger amounts.
Contact your Vancouver mortgage broker for more details.
*calculations are based on a 3.85% 5 year fixed rate. calculations are not exact. contact your mortgage broker for more details.
