Vinod gives us the low down on the BIG mortgage rule change, aka the new "Stress Test Rate". If you are planning on purchasing a home after October 17 with LESS than 20% down, WATCH this video!
Here is the example given:
Assuming an estimated annual family income of $100,000, living in a detached home, and an estimated per/month heat & prop tax of $500.. You will qualify for:
At discount rate of 2.44 = $625,000 Mortgage (approx.)
At Bank of Canada Prescribed Rate of 4.64% = $490,000 Mortgage (approx.)
That's a $130,000 less!
WOW.. Again this is Major. Do your research or call your banker or mortgage broker if you have questions or concerns.
This representation is based in whole or in part on data generated by the Chilliwack & District Real Estate Board, Fraser Valley Real Estate Board or Real Estate Board of Greater Vancouver which assumes no responsibility for its accuracy.