Effective January 1, 2018, home buyers in Canada will have another hurdle to jump in order to qualify for a mortgage. Anyone who applies for a mortgage will need to qualify for a mortgage rate that is 2 percentage points higher than the posted Bank of Canada 5 year rate or the contract rate, whichever rate is greater. This qualification process is already in place for Buyers who are putting less than 20% down on their home purchase but in a few short months, it will apply to all Buyers.
This change will affect Buyers in a number of different ways. It will reduce the price of home Buyers will qualify to purchase, it will require Buyers to put more money down on their new home, and in some cases, it will prevent people from buying a home.
If you have been considering purchasing a new home in the next four to six months, it will be worth your while to make a purchase before the end of the year. Right now, there is a healthy inventory of homes available across Calgary and there are still some excellent mortgage rates that you can secure. If you want to know more information about how the change will affect you or if you would like to start to look at homes, contact me today at 403-464-9300. Let me help you find your pathway home.