We have seen that Condo buyers are facing stricter lending guidelines, dropping values (especially for in-construction buildings) and, if they're self-employed or buying for investment purposes, new rules and restrictions.
In fact, situations where people who bought suites two years ago and thought they had a big enough mortgage to cover 75 per cent of the price are now being told 65 per cent is all their lender will put up.
New condo buildings can go down in value due to builders cutting back on extras and upgrades to increase affordability, says a Globe and Mail reporter.
Along with dropping values, self-employed condo buyers in particular have to show higher credit scores (in the 680 range, up from 620).
In addition, real estate investors face more restrictions - for example, lenders can only count 50 per cent of rental income toward revenue needed to qualify for a loan when it used to be 80 per cent.
Make sure you know your facts and that you consult a real mortgage professional (accredited and licensed) who will make your buying or refinancing experience pain-free, stress-free and enjoyable. With over 50 lenders available in Canada, there are simple and easy way to make sure you get the right mortgage tool to get you where you want to be.
Danny D. Kellman, MBA, AMP, EPC [ddkellman@mortgages4women.ca] is a principal with
The Mortgage Diversity Group Their blog is Mortgages 4 Women, Toronto, Ontario. Danny Kellman and Marcy Berg concentrate their efforts on bring information and knowledge to the growing base of women only mortgage business. Danny can be contacted at 300 - 40 Wynford Dr., Toronto, ON, M3C 1J5
Phone: 647-929-5346 Toll-free: 1-888-372-7367 ddkellman@mortgages4women.ca
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