There is finally some good news in the real estate world when it comes to your financing and qualifications! As of April 2020 there are some new mortgage rules you need to be aware of!
If you are planning on purchasing a home, you could easily qualify for more. If you have been turned down by the banks or the amount you were qualified for just wasn't enough, it could be your time to finally make that jump.
We were talking with Lindsay Labrecque with Spire Mortgage Team from MMG Mortgages and here is the low down.
Buyers with less than 20% down will qualify at an average interest rate plus 2%, instead of the current Benchmark rate of 5.19%. Based on assumptions, this is a -0.50% difference from the current qualifying rate and will increase purchasing power for the average Calgarian borrower by $20,000 - $30,000.
How do the new mortgage rules affect me?
First and foremost, this means that clients have to be properly pre-approved and that mortgage professionals need to be updating the clients and referral partners on a weekly basis given the new "moving target" qualifying rate.
It means that if you have an average household income of $111,000 per year (the average in Calgary in 2018), an no other debt, you qualify for a home purchase price $20,000 higher.
Ironically, if you have debt payments of between $500-$1,000 per month your purchasing power is actually increased by slightly more, $25,000 to $30,000.
To chat about your options... fill out the form below and Lindsay will be in touch with you to discuss how this impacts you personally!