Thursday, October 19, 2017

NEW MORTGAGE RULES CUT BUYING POWER

21% of your homebuying power lost!

This Huffpost article reports that new mortgage rules will require mortgage applicants to pass a stress test to determine if they can afford the mortgage.

According to calculations from mortgage comparison site Ratehub.ca, the new stress test will reduce the amount of home you can afford by around 21 per cent.
Currently, a household with an income of $100,000 can afford a house worth around $706,000, assuming a 25-year mortgage at 2.89 per cent. Under the new rules, that household would only be able to afford a house valued at $571,000.


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