Stress Test is changing

Author: Debbie Viveiros - Mortgage Agent | | Categories: best mortgage rates , bradford mortgage agent , bradford mortgage broker , First Time Home Buyer , first time home owner , Lowest mortgage rates , Mortgage Broker , Refinancing Mortgage

Mortgage Broker Markham

Good News! The stress test is being lowered. Its not tremendous but its certainly a step in the right direction.

We have yet another new borrowing guideline that the federal government is amending on April 6,2020.

Here is the list of the summarized details:

• Applies to borrowers seeking financing with less than 20% down payment for insured mortgages

• Not just for first time home buyers, but everyone with less than 20%.

• Overall qualifying rate will be reduced by approx 30 basis points or 0.30% currently at 5.19%.

• This change is being made to bring the qualifying rate more in-line with the housing market.

To summarize, this modification will increase ones borrowing power approximately 3-5% more. It could be the small bump one needs to get into owning their own piece of real estate. Check out the table enclosed.

Have questions? Please reach out anytime.