There are a lot of different stressors in the world of real estate right now, particularly for those who are
\ntrying to \u201cget in the game\u201d to buy their first home or investment property. On June 1, the Canadian
\ngovernment will be adding a little more stress to the lives of those looking to purchase real estate.<\/p>\n
**Disclaimer: this is not professional mortgage advice. For particulars of your own financial situation,<\/strong> Now, onto the good stuff.<\/p>\n The Stress Test was introduced by the Canadian Government in late 2017 as a market control and Now there are plenty of opinions for and against this move, but that is neither here nor there for today\u2019s The current stress test requires that you qualify for a mortgage at your rate plus 2% or 4.79%, which WOWZA!<\/p>\n Clearly, these changes will have a large impact on borrowers and their capacity to enter the market. You could buy a bucket of ice cream, close all the blinds in your house, put on some Adele and eat your If you don\u2019t currently have a mortgage broker and are thinking about getting into the market, call me or <\/p>\n
\nyou should consult with your mortgage broker.**<\/strong><\/p>\nWhat is the Stress Test?<\/strong><\/h2>\n
\nmortgage-default prevention measure. Essentially the premise was this, \u2018make Buyers qualify at a
\nhigher mortgage interest rate than what they will actually pay so that if\/when the interest rates
\nincrease, homeowners won\u2019t suddenly find themselves underwater and defaulting on their mortgage
\npayments.\u2019 Some logic there, arguably.<\/p>\n
\ndiscussion. Today we are talking about what the changes to that stress test are and how they might
\nimpact you.<\/p>\nSo, what are the changes?<\/strong><\/h2>\n
\never is higher. As of June 1, 2021, all borrowers will have to qualify at the new stress test levels of either
\nyour rate plus 2% or at 5.25% — whichever is higher.<\/p>\nWhat does this actually mean for YOU?<\/strong><\/h2>\n
\nAccording to the Green Mortgage Team, this change to the Stress Test will \u201cdecrease borrowing power
\nby approximately 4% to 4.5%,\u201d1<\/span> depending on the purchaser\u2019s specific situation.<\/p>\nWhat should you do?<\/strong><\/h2>\n
\nsorrows away… or you can call your mortgage broker and find out exactly how this will affect you and if
\nthere are any measures that you can take to counteract the increased Stress Test rates.<\/p>\n
\nyour Realtor and we will be able to direct you to some stellar Mortgage Brokers who can help give clarity
\nto what these new rules mean, specifically, for you!<\/p>\n