Important Mortgage News Update from OSFI regarding Mortgage Stress Tests
As always, here at Team Leading Edge we try to provide you with the latest information on the real estate market and the mortgage and financial sector that provides capital to buyers. Changes are coming effective January 1st that may mean that you need to act QUICKLY to purchase a home BEFORE January 1, 2018. Here is a LINK to the information directly from OFSI.
Effective January 1, 2018 uninsured mortgages will "stress tested" at benchmark rate or contract rate +2%. This will reduce the purchasing power by roughly 20%.
For our clients who are putting more than 20% down and currently pre-approved, please talk to us about buying before the new year or get re-qualified again.
As always if you have any questions about how this affects your ability to purchase or sell a home, PLEASE give us a call. We are happy to assist you and provide you with the information that you need. With all of the changes in the financial and real estate markets, you can count on Team Leading Edge to help you by providing the latest information to you.
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