Tuesday, January 24, 2012

New Mortgage Rules will limit your Toronto House Purchase

New and updated Mortgage Qualification tools may have some buyers pushed out of the Toronto condo and housing market regardless of the interest rates. You could be affected if you are;

a) Self employed
b) Condo Purchasers need to include 100% of Maintenence Fee.

Stated-income products have become very popular during this housing boom, allowing more banks to get involved in loaning to the selfemployed.

"These are individuals that are self-employed, have great credit and won't be able to validate their ability to pay if they are not showing their income on their notice of assessment," said one source.

He says those people with stated income could have to make an even higher down payment than the normal 20% that exempts consumers from buying expensive mortgage default insurance.

The suggestion the government might crack down on condo buyers is not new, having been scrapped last year in favour of tougher new rules on amortization lengths and refinancings. Most people in the real estate sector now believe amortizations will be reduced to 25 years after having been as long as 40 just three years ago.

Are you going to active this spring? Lets get you started on your next place sooner than later if these changes come into effect. Call me now for an appointment to pre qualify at 2.99%

This truly may be a limited time offer!

1 comment:

Unknown said...

Any idea when these rules come into play? Especially the maintenance fee changes? Square One Condo