Buying a home is one of the most important and exciting steps in your
life.... now figuring out financing! Deal with people who can offer you and
your family the best options for you with Your Mortgage Now! Devin Cristo and Wes Will are your Saskatoon Mortgage
Experts and they have years of experience helping
individuals and families finance their dreams by offering mortgages from a
variety of lenders for people from all walks of life.
They are your Trusted Saskatoon Mortgage Experts!
The Federal Government has made some major changes to the mortgage
requirements effective October 17th, 2016. This
drastically changes how much first time home buyers can qualify for and the
qualification process they must go through. This change has been implemented
due to the concern that household debt levels are too high in Canada. Now all
mortgage clients qualify under a new “Stress Test” environment.
These new measures are to help cool off the hot housing markets in areas
in Canada. Unfortunately first time home buyers will feel the most impact from
this change. For example, if someone qualified for a $350k mortgage prior to
the change, they now will qualify for a $280k mortgage. It will affect buyers
overall purchase power by approx. 20-25%. This is going to continue to impact
buyers over at least the next six months as buyers adjust their expectations
about what home they are able to buy. After this adjustment period the market
will pick up again just like in past years.
The other aspect is that buyers with a deposit of at least 5% but less
than 20% must be backed by mortgage insurance. This protects the lender in the
event the home buyer defaults on a high rated mortgage. This can get
complicated as it affects lenders and can impact interest rates which are then
passed down to the buyer.
These changes will also make it a lot harder for first time home buyers
to purchase a home. There has already been an increase in the amount of first
time home buyers that require their parents to co-sign on their mortgage or
need to provide support with a large down payment.
It is so important for our children to be educated at a young age so
that they are prepared for when it comes time to buy their first home.
Otherwise we will see an increase in the age that children are still living at
home, maybe even into their 30’s!! Make sure that you talk to Your Mortgage Now
about the ways that you can help you or your children when the time comes to
purchase a home.
That is why Devin and Wes from Your Mortgage Now are informed and
want to ensure as a buyer that you understand the way your mortgage approval
will work with the new changes implemented by the Federal Government.